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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CompX International Inc | AMEX:CIX | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.985 | 4.48% | 22.985 | 23.45 | 21.92 | 23.05 | 11,753 | 19:38:17 |
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
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
Following quarter-end:
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):
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:
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:
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:
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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