CI Financial Reports Financial Results for the Second Quarter of 2024

• Record diluted EPS of $1.15, record adjusted diluted EPS1 of $0.90
• Record EBITDA of $342.7 million, record adjusted EBITDA attributable to shareholders1 of $253.2 million
• EBITDA per share of $2.27 and adjusted EBITDA attributable to shareholders1 per share of $1.68, both at record levels
• Operating cash flow of $176.8 million, free cash flow1 of $151.7 million
• Operating cash flow per share of $1.17, free cash flow per share of $1.01
• Record total assets of $489.0 billion, up $81.0 billion or 19.8% year over year
• Paid $30.3 million in dividends at $0.20 per share
• In July, total assets surpassed $500 billion for the first time
• Repurchased 9.9 million shares under substantial issuer bids completed in April and July
• Corient acquired two U.S. wealth management firms with combined assets of approximately $5.6 billion; two additional firms acquired after quarter-end, adding $8.1 billion

All financial amounts in Canadian dollars as at June 30, 2024, unless stated otherwise.

CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended June 30, 2024.

“CI delivered strong results in the second quarter, with record adjusted diluted earnings per share1 of $0.90, and continued growth in revenues and adjusted EBITDA1,” said Kurt MacAlpine, CI Chief Executive Officer. “Total assets reached a new high of $489 billion, a year-over-year increase of 20%, and in July, our assets exceeded $500 billion for the first time.

“Corient, our U.S. subsidiary, is demonstrating significant growth in assets and profitability, having generated double-digit gains in adjusted EBITDA relative to both the previous quarter and the second quarter of 2023. This reflects the significant progress we have made in integrating that business and expanding its product offering.

“In addition to fostering organic growth at Corient, we continued our highly selective approach to M&A, seeking exceptional wealth management firms focused on ultra-high-net-worth individuals and families,” Mr. MacAlpine said. “In the second quarter, we made our first acquisitions of 2024, adding firms based in Florida and Ohio with combined assets of approximately $5.6 billion. In July, Corient completed the acquisitions of two other registered investment advisors – a Florida multi-family office and a private wealth manager based in Charlotte, North Carolina.

“Our recent capital management activities have also been productive,” Mr. MacAlpine said. "Through a tender offer and market transactions, we repurchased over US$578 million of our 2051 notes and US$52 million of our 2030 notes at significant discounts to face value, realizing a sizeable gain for CI shareholders.

“We also reduced acquisition-related liabilities by $101 million during the quarter and continued to return capital to shareholders by repurchasing a meaningful number of shares. Through two substantial issuer bids completed in April and July, we have bought back almost 10 million shares so far this year. Our normal course issuer bid, which we renewed in July, permits the repurchase of another 12.6 million shares over the next 12 months.”

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Total AUM and Client Assets:

 

 

 

 

 

Asset Management AUM (2)

130,063

 

130,132

 

125,004

 

119,040

 

122,377

 

Canada Wealth Management assets

95,551

 

93,726

 

87,991

 

81,503

 

82,566

 

Canada custody (3)

29,350

 

28,011

 

25,567

 

23,421

 

9,149

 

U.S. Wealth Management assets (4)

234,062

 

222,347

 

206,282

 

197,016

 

193,980

 

Total assets

489,026

 

474,216

 

444,844

 

420,980

 

408,072

 

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

Retail

(332

)

(1,320

)

(397

)

(110

)

7

 

Institutional

(43

)

4

 

—

 

(79

)

(14

)

Australia

(24

)

(92

)

230

 

(105

)

55

 

Closed Business

(216

)

(212

)

(200

)

(155

)

(174

)

Total Asset Management Segment

(616

)

(1,620

)

(367

)

(449

)

(126

)

U.S. Asset Management (5)

740

 

78

 

(67

)

(16

)

(266

)

 

 

 

 

 

 

IFRS Results

 

 

 

 

 

Net income attributable to shareholders

176.4

 

(154.4

)

(63.5

)

(12.4

)

51.0

 

Diluted earnings per share

1.15

 

(1.00

)

(0.40

)

(0.08

)

0.28

 

Pretax income

231.3

 

(122.6

)

(38.2

)

20.6

 

112.5

 

Pretax margin

23.5

%

(19.0

)%

(5.3

)%

3.3

%

14.5

%

Operating cash flow before the change in operating assets and liabilities

95.9

 

88.3

 

185.3

 

104.7

 

126.9

 

 

 

 

 

 

 

Adjusted Results (1)

 

 

 

 

 

Adjusted net income

135.5

 

132.8

 

128.2

 

132.8

 

136.0

 

Adjusted diluted earnings per share

0.90

 

0.86

 

0.81

 

0.81

 

0.76

 

Adjusted EBITDA

293.4

 

289.5

 

278.3

 

276.6

 

272.3

 

Adjusted EBITDA margin

40.1

%

41.4

%

41.7

%

41.3

%

41.6

%

Adjusted EBITDA attributable to shareholders

253.2

 

246.1

 

238.7

 

237.8

 

245.3

 

Free cash flow

151.7

 

156.2

 

170.9

 

179.4

 

143.3

 

 

 

 

 

 

 

Average shares outstanding

149,248,861

 

153,821,117

 

158,125,830

 

161,549,038

 

178,883,346

 

Adjusted average diluted shares outstanding

150,662,154

 

155,018,911

 

158,885,217

 

163,619,462

 

179,640,506

 

Ending shares outstanding

149,075,523

 

153,821,117

 

153,821,117

 

158,867,975

 

167,640,863

 

 

 

 

 

 

 

Total debt

3,642

 

3,608

 

3,507

 

3,289

 

3,132

 

Net debt

3,510

 

3,480

 

3,365

 

3,113

 

2,887

 

Net debt to adjusted EBITDA

3.5

 

3.5

 

3.5

 

3.3

 

2.9

 

1. Free cash flow, net debt, adjusted net income, adjusted earnings per share, adjusted diluted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
2. Includes $34.7 billion, $34.4 billion, $33.2 billion, $31.8 billion, and $32.8 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 June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.
3. Includes $25.6 billion, $24.5 billion, $21.5 billion, $19.7 billion, and $5.4 billion of assets advised by CI and held by clients of advisors with Assante, CIPC, CI Direct Investing and Aligned Capital as at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively. Prior to July 2023, custody assets were historically not included as part of reported assets for Canada wealth management or consolidated total assets.
4. Month-end USD/CAD exchange rates of 1.3680, 1.3546, 1.3250, 1.3582, and 1.3248 for June 2024, March 2024, December 2023, September 2023, and June 2023, respectively.
5. Includes 100% of flows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group and GLASfunds Holdings.

Financial highlights

Second quarter net income attributable to shareholders was $176.4 million compared to a net loss of $154.4 million in the first quarter of 2024. Excluding non-operating items, adjusted net income attributable to shareholders1 was $135.6 million in the second quarter, up 2.0% from the previous quarter.

Second quarter total net revenues were $986.0 million, up from $645.7 million in the first quarter of 2024. Excluding non-operating items, adjusted total net revenues1 were $731.3 million, up 4.7% from $698.6 million due to higher revenues from all three segments, led by a 7.9% increase in U.S. wealth management fees.

Second quarter total expenses declined 1.8% to $754.7 million from $768.3 million in the first quarter of 2024. Excluding non-operating items, adjusted total expenses1 were $507.9 million, up 8.0% from $470.3 million in the previous quarter as a result of higher SG&A, higher advisor and dealer fees due to higher Canada Wealth Management revenues, and higher interest expense.

Capital allocation

CI paid $30.3 million in dividends at a rate of $0.20 per share. The annual dividend rate of $0.80 per share represented a yield of 5.0% on CI’s closing share price of $16.00 on August 7, 2024. As announced yesterday, the Board of Directors of CI declared a quarterly dividend of $0.20 per share, payable on January 15, 2025 to shareholders of record as of December 31, 2024.

Under a substantial issuer bid that expired on April 2, 2024, CI purchased for cancellation 4,857,142 common shares at a purchase price of $17.50 per share, for an aggregate price of $85 million.

On May 31, CI commenced a subsequent substantial issuer bid, which expired after quarter-end, on July 8, 2024. Under the offer, CI purchased for cancellation five million common shares at a purchase price of $15.50 per share, for an aggregate price of approximately $77.5 million.

As a result of a tender offer announced in May 2024 and completed in June 2024, CI purchased US$570 million of its outstanding 4.100% notes due 2051, resulting in a significant gain for CI. Concurrent with the tender offer, CI issued 7.500% notes due 2029 with an aggregate principal amount of US$675.0 million.

CI executed amendments to the trust indentures governing its 3.759% Debentures due 2025 and 3.904% Debentures due 2027 following approvals from debentureholders at meetings held April 4, 2024. The amendments remove the covenants preventing any subsidiary of CI from creating, assuming, or otherwise directly incurring certain indebtedness.

Second quarter business highlights

• Corient completed the acquisitions of two registered investment advisors with combined assets of approximately $5.6 billion (US$4.1 billion): Paragon Advisors Inc. of Shaker Heights, Ohio, a multi-family office, and Socius Family Office, LLC of Fort Lauderdale, Florida, which specializes in wealth management for professional athletes. Both firms are now operating under the Corient name.
• As part of CI’s strategy of modernizing asset management, CI Global Asset Management (“CI GAM”) made several enhancements to its lineup of investment solutions. These included launching CI Global Artificial Intelligence ETF (TSX: CIAI), which focuses on investment opportunities created by AI technologies, and new series of two existing U.S. equity ETFs. CI GAM also completed the mergers of 13 mutual funds and six ETFs into other funds, simplifying the firm’s overall product offering.
• Northwood Family Office was named the winner of the 2024 Family Wealth Report Award for Best Multi-Family Office in North America (up to and including US$2.5 billion AUM/AUA).

Following quarter-end:

• Effective July 31, 2024, Corient acquired Emerald Multi-Family Office (EMFO, LLC) of Weston, Florida, and Byron Financial, LLC of Charlotte, North Carolina, which provide comprehensive wealth management services to ultra-high-net-worth clients. The firms have combined assets of approximately $8.1 billion (US$5.9 billion).
• CI GAM launched new investment solutions to meet investor demand in two key market segments. These included new fixed-income solutions available in both mutual funds and ETF series: CI Global Short-Term Bond Fund (Cboe: CGSB) and CI Global Unconstrained Bond Fund (TSX: CUBD). Additionally, CI GAM launched three covered call mandates: CI Multi-Sector Covered Call Fund, CI U.S. Aggregate Bond Covered Fund and CI U.S. Aggregate Bond Covered ETF.

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EDT, 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: 921751):

• 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, which operates in Australia.
• Canadian Wealth Management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, 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.

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in the forward-looking statements include that asset levels will remain stable. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.

This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

CI Global Asset Management is a registered business name of CI Investments Inc., a wholly owned subsidiary of CI.

CONSOLIDATED STATEMENT OF INCOME

 

 

For the three-month period ended June 30

2024

2023

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

$

$

REVENUE

 

 

Canada asset management fees

374,932

375,835

Trailer fees and deferred sales commissions

(113,936)

(114,874)

Net asset management fees

260,996

260,961

Canada wealth management fees

168,733

144,092

U.S. wealth management fees

261,292

216,759

Other revenues

34,837

31,326

Foreign exchange losses

(22,599)

36,462

Other gains (losses)

282,700

86,483

Total net revenues

985,959

776,083

 

 

 

EXPENSES

 

 

Selling, general and administrative

432,226

345,904

Advisor and dealer fees

128,641

108,175

Interest and lease finance

55,166

46,137

Amortization and depreciation

18,403

13,330

Amortization of intangible assets from acquisitions

36,496

33,077

Transaction, integration, restructuring and legal

19,466

55,783

Change in fair value of contingent consideration

12,594

15,249

Change in fair value of Preferred Share Liability

42,396

35,000

Other

9,321

10,949

Total expenses

754,709

663,604

Income before income taxes

231,250

112,479

 

 

 

Provision for (recovery of) income taxes

 

 

Current

57,398

65,149

Deferred

(3,157)

(4,048)

 

54,241

61,101

Net income (loss) for the period

177,009

51,378

Net income (loss) attributable to non-controlling interests

594

425

Net income (loss) attributable to shareholders

176,415

50,953

Basic earnings per share attributable to shareholders

$1.18

$0.28

Diluted earnings per share attributable to shareholders

$1.15

$0.28

 

 

 

Other comprehensive income (loss), net of tax

 

 

Exchange differences on translation of foreign operations

16,089

(23,530)

Total other comprehensive income, net of tax

16,089

(23,530)

Comprehensive income (loss) for the period

193,098

27,848

Comprehensive income (loss) attributable to non-controlling interests

367

58

Comprehensive income (loss) attributable to shareholders

192,731

27,790

 

As at

As at

CONSOLIDATED BALANCE SHEET

June 30, 2024

December 31, 2023

[in thousands of Canadian dollars]

$

$

ASSETS

 

 

Current

 

 

Cash and cash equivalents

128,064

137,029

Client and trust funds on deposit

1,230,634

1,073,378

Investments

42,517

42,781

Accounts receivable and prepaid expenses

461,831

388,029

Assets held for sale

—

326

Income taxes receivable

22,443

33,911

Total current assets

1,885,489

1,675,454

Capital assets, net

146,992

85,077

Right-of-use assets

244,555

229,763

Intangibles and goodwill

7,773,691

7,575,958

Deferred income taxes

83,991

78,642

Other assets

389,787

336,709

Total assets

10,524,505

9,981,603

LIABILITIES AND EQUITY

 

 

Current

 

 

Accounts payable and accrued liabilities

417,529

378,374

Current portion of provisions and other financial liabilities

351,747

444,200

Dividends payable

59,630

61,528

Client and trust funds payable

1,232,161

1,068,809

Income taxes payable

21,721

15,252

Redeemable unit liabilities

1,268,915

1,089,996

Preferred Share Liability

1,624,696

1,481,419

Current portion of long-term debt

524,996

437,255

Current portion of lease liabilities

30,741

17,575

Total current liabilities

5,532,136

4,994,408

Long-term debt

3,117,179

3,070,149

Provisions and other financial liabilities

83,479

96,952

Other long-term payable

27,081

15,853

Deferred income taxes

477,740

479,150

Lease liabilities

314,966

285,053

Total liabilities

9,552,581

8,941,565

Equity

 

 

Share capital

1,391,147

1,436,686

Contributed surplus

43,117

34,828

Deficit

(532,616)

(454,435)

Accumulated other comprehensive income

58,000

10,683

Total equity attributable to the shareholders of the Company

959,648

1,027,762

Non-controlling interests

12,276

12,276

Total equity

971,924

1,040,038

Total liabilities and equity

10,524,505

9,981,603

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

For the three-month period ended June 30

2024

2023

[in thousands of Canadian dollars]

$

$

OPERATING ACTIVITIES (*)

 

 

Net income for the period

177,009

51,378

Add (deduct) items not involving cash

 

 

Other (gains) losses

(282,700)

(86,483)

Change in fair value of contingent consideration

12,594

15,249

Change in fair value of Preferred Share Liability

42,396

35,000

Contingent and deferred consideration recorded as compensation

651

812

Amortization of loan guarantees

(498)

(1,762)

Recognition of non-cash vesting of redeemable unit liabilities

82,420

63,096

Equity-based compensation

11,935

6,889

Equity accounted income

(1,088)

(996)

Amortization of equity accounted investments

1,427

1,404

Amortization and depreciation

18,403

13,330

Amortization of intangible assets from acquisitions

36,496

33,077

Deferred income taxes

(3,157)

(4,048)

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

95,888

126,946

Net change in operating assets and liabilities

80,871

14,979

Cash provided by operating activities

176,759

141,925

 

 

 

INVESTING ACTIVITIES

 

 

Cash paid to settle acquisition liabilities

(116,909)

(170,508)

Acquisitions, net of cash acquired

(106,638)

(41,557)

Proceeds on sale of equity-accounted investment

—

130,458

Purchase of investments

(152)

(172)

Proceeds on sale of investments

139

22

Additions to capital assets

(38,242)

(6,910)

Decrease in other assets

(3,298)

(14,870)

Additions to intangibles

(259)

(4,533)

Cash used in investing activities

(265,359)

(108,070)

 

 

 

FINANCING ACTIVITIES

 

 

Repayment of long-term debt

(420,000)

(298,000)

Issuance of long-term debt

1,290,666

—

Repurchase of long-term debt

(596,386)

(694,671)

Repurchase of share capital

(85,542)

(228,774)

Payment of lease liabilities

(1,998)

(6,352)

Issuance of redeemable unit liabilities, net of redemptions

(65,933)

(18,187)

Net distributions to non-controlling interest

—

(1,750)

Dividends paid to shareholders

(30,292)

(32,895)

Issuance of Preferred Share Liability

—

1,350,300

Cash provided by financing activities

90,515

69,671

Net decrease in cash and cash equivalents during the period

1,915

103,526

Cash and cash equivalents, beginning of period

126,149

136,970

Cash and cash equivalents, end of period

128,064

240,496

SUPPLEMENTAL CASH FLOW INFORMATION

 

 

(*) Included in operating activities are the following:

 

 

Interest paid

78,196

73,899

Income taxes paid

44,444

33,909

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Beginning AUM

130.1

 

125.0

 

119.0

 

122.4

 

122.0

 

Gross inflows

8.1

 

6.7

 

7.3

 

5.7

 

6.1

 

Gross outflows

(8.7

)

(8.3

)

(7.7

)

(6.2

)

(6.2

)

Net inflows/(outflows)

(0.6

)

(1.6

)

(0.4

)

(0.4

)

(0.1

)

Acquisitions

—

 

—

 

—

 

—

 

—

 

Market move and FX

0.5

 

6.7

 

6.3

 

(2.9

)

0.5

 

Ending AUM

130.1

 

130.1

 

125.0

 

119.0

 

122.4

 

Proprietary AUM

34.1

 

34.4

 

33.2

 

31.8

 

32.8

 

Non-proprietary AUM

95.9

 

95.7

 

91.8

 

87.2

 

89.6

 

Average assets under management

129.2

 

126.8

 

121.1

 

122.1

 

122.1

 

Annualized organic growth

(1.9

)%

(5.2

)%

(1.2

)%

(1.5

)%

(0.4

)%

 

 

 

 

 

 

Gross management fee/average AUM

1.18

%

1.19

%

1.20

%

1.24

%

1.25

%

Net management fee/average AUM

0.80

%

0.81

%

0.81

%

0.84

%

0.85

%

 

 

 

 

 

 

Net Inflows/(Outflows)

 

 

 

 

 

Retail

(0.3

)

(1.3

)

(0.4

)

(0.1

)

—

 

Institutional

—

 

—

 

—

 

(0.1

)

—

 

Closed business

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.2

)

Total Canada net inflows/(outflows)

(0.6

)

(1.5

)

(0.6

)

(0.3

)

(0.2

)

Australia

—

 

(0.1

)

0.2

 

(0.1

)

0.1

 

Total net inflows/(outflows)

(0.6

)

(1.6

)

(0.4

)

(0.4

)

(0.1

)

 

Retail

[billions of dollars]

Quarters Ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Jun. 30, 2023

Beginning AUM

115.1

103.7

99.1

101.7

101.2

Net Flows

(0.3)

(1.3)

(0.4)

(0.1)

0.0

Market Move / FX

(6.8)

12.7

5.0

(2.5)

0.5

Acquisitions

—

—

—

—

—

Ending AUM

108.0

115.1

103.7

99.1

101.7

Average AUM

111.5

105.3

100.7

101.5

101.3

Institutional

[billions of dollars]

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Jun. 30, 2023

Beginning AUM

9.1

8.8

8.3

8.5

8.5

Net Flows

0.0

0.0

0.0

(0.1)

0.0

Market Move / FX

0.1

0.3

0.5

(0.1)

0.0

Acquisitions

—

—

—

—

—

Ending AUM

9.2

9.1

8.8

8.3

8.5

Average AUM

9.2

8.9

8.5

8.5

8.5

AUSTRALIA

[billions of dollars]

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Jun. 30, 2023

Beginning AUM

5.7

5.4

4.8

5.0

4.9

Net Flows

0.0

(0.1)

0.2

(0.1)

0.1

Market Move / FX

0.1

0.4

0.4

(0.1)

0.0

Acquisitions

—

—

—

—

—

Ending AUM

5.8

5.7

5.4

4.8

5.0

Average AUM

5.8

5.4

5.0

4.9

5.0

CLOSED BUSINESS

[billions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Jun. 30, 2023

Beginning AUM

7.3

7.1

6.9

7.2

7.4

Net Flows

(0.2)

(0.2)

(0.2)

(0.2)

(0.2)

Market Move / FX

—

0.4

0.4

(0.1)

—

Acquisitions

—

—

—

—

—

Ending AUM

7.1

7.3

7.1

6.9

7.2

Average AUM

7.2

7.2

7.0

7.2

7.3

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Balanced

51.8

52.5

51.4

47.7

49.8

Equity

42.4

42.7

40.1

41.1

43.0

Fixed income

12.0

11.7

11.6

10.5

11.1

Alternatives

7.6

7.7

6.4

5.5

5.1

Cash/Other

10.6

9.8

10.2

9.5

8.4

Total Canada asset management

124.3

124.5

119.6

114.3

117.4

Australia

5.8

5.7

5.4

4.8

5.0

Total asset management segment

130.1

130.1

125.0

119.0

122.4

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Beginning client assets

93.7

 

88.0

 

81.5

 

82.6

 

81.6

 

Acquisitions

—

 

—

 

1.3

 

—

 

—

 

Net flows and market move

1.8

 

5.7

 

5.2

 

(1.1

)

1.0

 

Ending client assets

95.6

 

93.7

 

88.0

 

81.5

 

82.6

 

Average client assets

94.6

 

90.9

 

83.8

 

83.2

 

81.9

 

Wealth management fees/average client assets

0.90

%

0.89

%

0.91

%

0.90

%

0.91

%

 

 

 

 

 

 

Canada custody

29.4

 

28.0

 

25.6

 

23.4

 

9.1

 

Proprietary custody

25.5

 

24.5

 

21.5

 

19.7

 

5.4

 

Non-proprietary custody

3.8

 

3.5

 

4.1

 

3.8

 

3.7

 

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Beginning billable client assets

212.4

 

196.8

 

188.2

 

185.0

 

179.9

 

Acquisitions/divestitures

5.6

 

—

 

2.2

 

2.1

 

4.0

 

Net flows and market move

5.8

 

15.5

 

6.4

 

1.1

 

1.1

 

Ending billable client assets

223.7

 

212.4

 

196.8

 

188.2

 

185.0

 

Non-billable client assets

10.3

 

10.0

 

9.4

 

8.8

 

9.0

 

Total client assets

234.1

 

222.3

 

206.3

 

197.0

 

194.0

 

Fees/beginning billable client assets

0.49

%

0.49

%

0.48

%

0.49

%

0.48

%

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 and consideration for strategic recruitment classified as compensation per IFRS
• restructuring charges
• legal provisions for a class action related to time zone arbitrage
• 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 August 8, 2024 available on SEDAR at www.sedar.com or at www.cifinancial.com.

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

 

 

[millions of dollars, except per share amounts]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023

Net Income

177.0

(154.5)

51.4

Amortization of intangible assets from acquisitions

36.5

35.0

33.1

Amortization of intangible assets for equity accounted investments

1.4

1.4

1.4

Change in fair value of contingent consideration

12.6

32.1

15.2

Change in fair value of preferred equity

42.4

52.3

35.0

Interest expense on redeemable shares issued in connection with acquisitions

3.0

1.5

2.2

Contingent consideration recorded as compensation

25.8

13.8

0.8

Non-controlling interest reclassification

1.1

1.0

2.4

Accounting for Corient and CIPW Canada redeemable units

98.6

126.7

79.6

Severance

7.2

9.8

1.4

Amortization of loan guarantees

(0.5)

(0.6)

(1.8)

FX (gains)/losses

22.6

54.6

(36.5)

Transaction, integration, restructuring and legal

20.1

26.4

55.8

Other (gains)/losses

2.7

(3.1)

(70.0)

Gain on debt retirement

(281.3)

—

(16.2)

Total adjustments

(7.8)

351.0

102.5

Tax effect of adjustments

(2.7)

(26.3)

6.3

Less: Non-controlling interest

31.0

37.4

24.2

Adjusted net income

135.5

132.8

136.0

Adjusted earnings per share

0.91

0.86

0.76

Adjusted diluted earnings per share

0.90

0.86

0.76

 

 

 

 

Average diluted shares outstanding under IFRS

153.8

153.8

190.4

Weighted average impact of RSU awards

 

1.2

—

Shares convertible into common in connection with an acquisition

(3.1)

—

(10.8)

Adjusted average diluted shares outstanding

150.7

155.0

179.6

 

 

 

 

 

 

 

 

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

 

 

[millions of dollars, except per share amounts]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023

Pretax income

231.3

 

(122.6

)

112.5

 

Amortization of intangible assets from acquisitions

36.5

 

35.0

 

33.1

 

Amortization of intangible assets for equity accounted investments

1.4

 

1.4

 

1.4

 

Depreciation and other amortization

18.4

 

17.2

 

13.3

 

Interest and lease finance expense

55.2

 

48.3

 

46.1

 

EBITDA

342.7

 

(20.7

)

206.4

 

Change in fair value of contingent consideration

12.6

 

32.1

 

15.2

 

Change in fair value of preferred equity

42.4

 

52.3

 

35.0

 

Contingent consideration recorded as compensation

25.8

 

13.8

 

0.8

 

Non-controlling interest reclassification

1.1

 

1.0

 

2.4

 

Accounting for Corient and CIPW Canada redeemable units

98.6

 

126.7

 

79.6

 

Severance

7.2

 

9.8

 

1.4

 

Amortization of loan guarantees

(0.5

)

(0.6

)

(1.8

)

FX (gains)/losses

22.6

 

54.6

 

(36.5

)

Transaction, integration, restructuring and legal

19.5

 

23.4

 

55.8

 

Other (gains)/losses

2.7

 

(3.1

)

(70.0

)

Gain on debt retirement

(281.3

)

—

 

(16.2

)

Total adjustments

(49.4

)

310.1

 

65.9

 

Adjusted EBITDA

293.4

 

289.5

 

272.3

 

Less: Non-controlling interest

40.2

 

43.4

 

27.0

 

Adjusted EBITDA attributable to shareholders

253.2

 

246.1

 

245.3

 

 

 

 

 

Reported net revenue

986.0

 

645.7

 

776.1

 

Less: FX gains/(losses)

(22.6

)

(54.6

)

36.5

 

Less: Non-Operating Other gains/(losses)

(2.7

)

3.1

 

70.0

 

Less: Amortization of equity accounted investments

(1.4

)

(1.4

)

(1.4

)

Less: Gain on debt retirement

281.3

 

—

 

16.2

 

Adjusted net revenue

731.3

 

698.6

 

654.8

 

Adjusted EBITDA margin

40.1

%

41.4

%

41.6

%

 

 

 

 

FREE CASH FLOW

[millions of dollars]

Quarters ended

Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023

Cash provided by operating activities

176.8

119.7

141.9

Less: Net change in operating assets and liabilities

80.9

31.4

15.0

Operating cash flow before the change in operating assets and liabilities

95.9

88.3

126.9

FX (gains)/losses

22.6

54.6

(36.5)

Transaction, integration, restructuring and legal

20.1

26.4

55.8

Total adjustments

42.7

80.9

19.3

Tax effect (recovery) of adjustments

14.6

(12.8)

(1.5)

Less: Non-controlling interest

1.4

0.3

1.4

Free cash flow

151.7

156.2

143.3

NET DEBT

 

 

 

 

 

 

Quarters ended

[millions of dollars]

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Current portion of long-term debt

525.0

482.4

437.3

157.2

—

Long-term debt

3,117.2

3,125.2

3,070.1

3,131.9

3,131.5

 

3,642.2

3,607.6

3,507.4

3,289.1

3,131.5

Less:

 

 

 

 

 

Cash and short-term investments

128.1

126.1

137.0

175.7

240.5

Marketable securities

27.8

27.0

28.2

22.4

23.0

Add:

 

 

 

 

 

Regulatory capital and non-controlling interests

24.0

25.4

22.4

22.3

18.6

Net Debt

3,510.4

3,479.9

3,364.6

3,113.3

2,886.6

 

 

 

 

 

 

Adjusted EBITDA

253.2

246.1

238.7

237.8

245.3

Adjusted EBITDA, annualized

1,012.7

984.4

954.9

943.3

983.8

Gross leverage (Gross debt/Annualized adjusted EBITDA)

3.6

3.7

3.7

3.5

3.2

Net leverage (Net debt/Annualized adjusted EBITDA)

3.5

3.5

3.5

3.3

2.9

SUMMARY OF QUARTERLY RESULTS

 

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

374.9

371.6

361.9

375.6

375.8

 

374.9

371.6

361.9

375.6

375.8

Trailer fees and deferred sales commissions

(113.9)

(113.6)

(111.3)

(114.7)

(114.9)

 

(113.9)

(113.6)

(111.3)

(114.7)

(114.9)

Net asset management fees

261.0

258.0

250.6

260.8

261.0

 

261.0

258.0

250.6

260.8

261.0

Canada wealth management fees

168.7

159.7

150.5

146.7

144.1

 

168.7

159.7

150.5

146.7

144.1

U.S. wealth management fees

261.3

242.1

226.8

229.0

216.8

 

261.3

242.1

226.8

229.0

216.8

Other revenues

34.8

35.4

31.6

40.9

31.3

 

36.3

36.8

37.8

33.6

32.7

FX gains/(losses)

(22.6)

(54.6)

52.2

(60.4)

36.5

 

—

—

—

—

—

Other gains/(losses)

282.7

5.0

3.8

(0.4)

86.5

 

4.1

2.0

0.9

(0.5)

0.3

Total net revenues

986.0

645.7

715.6

616.5

776.1

 

731.3

698.6

666.7

669.6

654.8

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

432.2

432.0

375.9

343.5

345.9

 

301.1

282.3

272.4

275.8

265.9

Advisor and dealer fees

128.6

120.8

113.8

110.3

108.2

 

128.6

120.8

113.8

110.3

108.2

Other

9.3

7.1

(0.4)

16.7

10.9

 

8.3

6.1

5.8

6.9

8.5

Interest and lease finance expense

55.2

48.3

43.9

39.8

46.1

 

51.7

45.1

41.2

39.9

44.0

Depreciation and other amortization

18.4

17.2

17.3

12.9

13.3

 

18.2

16.0

15.5

12.9

13.3

Amortization of intangible assets from acquisitions

36.5

35.0

36.1

34.8

33.1

 

—

—

—

—

—

Transaction, integration, restructuring and legal

19.5

23.4

39.9

23.7

55.8

 

—

—

—

—

—

Change in fair value of contingent consideration

12.6

32.1

26.8

(7.2)

15.2

 

—

—

—

—

—

Change in fair value of Preferred Share Liability

42.4

52.3

100.5

21.4

35.0

 

—

—

—

—

—

Total expenses

754.7

768.3

753.7

595.9

663.6

 

507.9

470.3

448.7

445.8

439.9

Pretax income

231.3

(122.6)

(38.2)

20.6

112.5

 

223.5

228.4

218.0

223.9

215.0

Income tax expense

54.2

31.9

25.1

32.8

61.1

 

57.0

58.2

55.6

57.1

54.8

Net income

177.0

(154.5)

(63.2)

(12.2)

51.4

 

166.5

170.1

162.4

166.8

160.1

Less: Non-controlling interest

0.6

(0.1)

0.3

0.2

0.4

 

31.0

37.4

34.2

34.0

24.2

Net income attributable to shareholders

176.4

(154.4)

(63.5)

(12.4)

51.0

 

135.5

132.8

128.2

132.8

136.0

Basic earnings per share

1.18

(1.00)

(0.40)

(0.08)

0.28

 

0.91

0.86

0.81

0.82

0.76

Diluted earnings per share

1.15

(1.00)

(0.40)

(0.08)

0.28

 

0.90

0.86

0.81

0.81

0.76

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

 

 

 

 

 

 

 

 

 

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

379.9

376.3

366.4

380.1

380.2

 

379.9

376.3

366.4

380.1

380.2

Trailer fees and deferred sales commissions

(121.4)

(121.0)

(118.7)

(122.2)

(122.5)

 

(121.4)

(121.0)

(118.7)

(122.2)

(122.5)

Net asset management fees

258.4

255.4

247.7

257.9

257.8

 

258.4

255.4

247.7

257.9

257.8

Other revenues

6.2

4.4

4.7

4.8

5.1

 

6.2

4.4

4.7

4.8

5.1

FX gains/(losses)

(22.7)

(58.7)

56.1

(61.9)

37.5

 

—

—

—

—

—

Other gains/(losses)

281.9

4.4

1.9

(0.4)

16.1

 

3.5

1.7

1.9

(0.5)

0.3

Total net revenues

523.8

205.5

310.4

200.3

316.5

 

268.1

261.5

254.3

262.2

263.1

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

111.9

108.0

108.7

110.9

101.0

 

106.1

101.2

97.4

105.2

102.6

Other

3.2

0.1

0.3

0.7

—

 

3.2

0.1

0.3

0.7

—

Interest and lease finance expense

0.5

0.5

0.5

2.5

(1.5)

 

0.5

0.5

0.5

2.5

(1.5)

Depreciation and other amortization

4.4

4.0

3.9

2.5

5.4

 

4.4

4.0

3.9

2.5

5.4

Amortization of intangible assets from acquisitions

0.6

0.6

0.6

0.6

0.6

 

—

—

—

—

—

Transaction, integration, restructuring and legal

0.3

1.3

2.0

0.6

34.6

 

—

—

—

—

—

Change in fair value of contingent consideration

(0.3)

3.5

8.8

(0.6)

0.7

 

—

—

—

—

—

Total expenses

120.6

118.0

124.7

117.2

140.8

 

114.2

105.7

102.0

111.0

106.6

Pretax income

403.2

87.5

185.7

83.1

175.7

 

153.9

155.7

152.3

151.2

156.5

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

403.2

87.5

185.7

83.1

175.7

 

153.9

155.7

152.3

151.2

156.5

Amortization of intangible assets from acquisitions

0.6

0.6

0.6

0.6

0.6

 

—

—

—

—

—

Depreciation and other amortization

4.4

4.0

3.9

2.5

5.4

 

4.4

4.0

3.9

2.5

5.4

Interest and lease finance expense

0.5

0.5

0.5

2.5

(1.5)

 

0.5

0.5

0.5

2.5

(1.5)

EBITDA

408.7

92.6

190.7

88.7

180.2

 

158.8

160.2

156.6

156.2

160.5

Change in fair value of contingent consideration

(0.3)

3.5

8.8

(0.6)

0.7

 

—

—

—

—

—

FX (gains)/losses

22.7

58.7

(56.1)

61.9

(37.5)

 

—

—

—

—

—

Severance

5.8

6.9

8.8

6.1

0.1

 

—

—

—

—

—

Amortization of loan guarantees

—

—

2.5

(0.5)

(1.8)

 

—

—

—

—

—

Transaction, integration, restructuring and legal

0.3

1.3

2.0

0.6

34.6

 

—

—

—

—

—

Other (gains)/losses

2.9

(2.7)

—

—

0.3

 

—

—

—

—

—

Gain on debt retirement

(281.3)

—

—

—

(16.2)

 

—

—

—

—

—

Total adjustments

(249.9)

67.7

(34.0)

67.5

(19.8)

 

—

—

—

—

—

Adjusted EBITDA

158.8

160.2

156.6

156.2

160.5

 

158.8

160.2

156.6

156.2

160.5

Less: Non-controlling interest

(0.1)

(0.4)

0.1

0.2

0.2

 

(0.1)

(0.4)

0.1

0.2

0.2

Adjusted EBITDA attributable to shareholders

158.9

160.6

156.5

156.0

160.3

 

158.9

160.6

156.5

156.0

160.3

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

 

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

211.4

201.0

192.8

189.1

186.8

 

211.4

201.0

192.8

189.1

186.8

Other revenues

33.3

33.4

31.7

30.7

30.5

 

33.4

33.4

31.7

30.7

30.6

FX gains/(losses)

—

1.0

(1.8)

1.4

(0.5)

 

—

—

—

—

—

Total net revenues

244.7

235.4

222.7

221.1

216.8

 

244.7

234.4

224.6

219.8

217.4

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

57.1

55.4

50.6

52.2

50.3

 

56.8

53.9

49.8

49.2

49.3

Advisor and dealer fees

162.9

153.9

147.9

144.4

142.5

 

162.9

153.9

147.9

144.4

142.5

Other

6.1

6.3

6.2

5.9

9.3

 

5.0

5.3

5.1

4.8

8.0

Interest and lease finance expense

0.3

0.4

0.3

0.6

—

 

0.3

0.4

0.3

0.6

—

Depreciation and other amortization

4.8

4.9

5.1

5.2

2.9

 

4.8

4.9

5.1

5.2

2.9

Amortization of intangible assets from acquisitions

2.3

2.3

2.3

2.2

2.2

 

—

—

—

—

—

Transaction, integration, restructuring and legal

—

—

5.4

0.4

0.1

 

—

—

—

—

—

Change in fair value of contingent consideration

0.3

1.6

3.5

(0.4)

1.0

 

—

—

—

—

—

Total expenses

233.9

224.8

221.3

210.5

208.4

 

229.9

218.4

208.3

204.2

202.7

Pretax income

10.8

10.6

1.4

10.7

8.5

 

14.8

16.0

16.3

15.6

14.7

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

10.8

10.6

1.4

10.7

8.5

 

14.8

16.0

16.3

15.6

14.7

Amortization of intangible assets from acquisitions

2.3

2.3

2.3

2.2

2.2

 

—

—

—

—

—

Amortization of intangible assets for equity accounted investments

0.1

0.1

0.1

0.1

0.1

 

—

—

—

—

—

Depreciation and other amortization

4.8

4.9

5.1

5.2

2.9

 

4.8

4.9

5.1

5.2

2.9

Interest and lease finance expense

0.3

0.4

0.3

0.6

—

 

0.3

0.4

0.3

0.6

—

EBITDA

18.3

18.3

9.1

18.7

13.6

 

19.9

21.3

21.7

21.4

17.6

Change in fair value of contingent consideration

0.3

1.6

3.5

(0.4)

1.0

 

—

—

—

—

—

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

0.1

0.1

0.1

0.1

0.2

 

—

—

—

—

—

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

(0.3)

0.7

0.7

2.0

0.2

 

—

—

—

—

—

FX (gains)/losses

—

(1.0)

1.8

(1.4)

0.5

 

—

—

—

—

—

Severance

0.5

0.7

—

0.9

0.7

 

—

—

—

—

—

Transaction, integration, restructuring and legal

—

—

5.4

0.4

0.1

 

—

—

—

—

—

Non-controlling interest reclassification (included in Other)

1.1

1.0

1.1

1.1

1.3

 

—

—

—

—

—

Total adjustments

1.7

3.1

12.6

2.7

4.0

 

—

—

—

—

—

Adjusted EBITDA

19.9

21.3

21.7

21.4

17.6

 

19.9

21.3

21.7

21.4

17.6

Less: Non-controlling interest

1.9

1.8

2.0

1.2

1.4

 

1.9

1.8

2.0

1.2

1.4

Adjusted EBITDA attributable to shareholders

18.0

19.5

19.7

20.1

16.2

 

18.0

19.5

19.7

20.1

16.2

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

 

 

 

 

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

 

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Jun. 30, 2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

261.3

242.1

226.8

229.0

216.8

 

261.3

242.1

226.8

229.0

216.8

Other revenues

5.7

7.4

4.5

14.9

5.4

 

7.0

8.8

10.6

7.6

6.7

FX gains/(losses)

0.1

3.1

(2.1)

0.1

(0.6)

 

—

—

—

—

—

Other gains/(losses)

0.8

0.6

1.9

—

70.4

 

0.6

0.3

(1.0)

—

—

Total net revenues

267.8

253.2

231.1

244.0

291.9

 

268.9

251.1

236.4

236.6

223.5

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

278.9

283.7

231.1

195.2

209.5

 

153.9

142.4

139.7

136.0

128.8

Other

0.4

0.8

(6.9)

10.1

1.6

 

0.4

0.8

0.4

1.4

0.5

Interest and lease finance expense

5.1

5.2

4.0

0.8

3.2

 

4.7

3.5

2.1

0.8

3.2

Depreciation and other amortization

9.2

8.3

8.3

5.2

5.0

 

8.9

7.0

6.5

5.2

5.0

Amortization of intangible assets from acquisitions

33.6

32.1

33.2

32.0

30.3

 

—

—

—

—

—

Transaction, integration, restructuring and legal

19.1

22.1

32.5

22.7

21.1

 

—

—

—

—

—

Change in fair value of contingent consideration

12.6

27.1

14.5

(6.1)

13.5

 

—

—

—

—

—

Change in fair value of preferred equity

42.4

52.3

100.5

21.4

35.0

 

—

—

—

—

—

Total expenses

401.3

431.7

417.2

281.3

319.3

 

167.9

153.8

148.8

143.4

137.6

Pretax income

(133.5)

(178.4)

(186.1)

(37.3)

(27.3)

 

101.0

97.4

87.7

93.2

85.9

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

(133.5)

(178.4)

(186.1)

(37.3)

(27.3)

 

101.0

97.4

87.7

93.2

85.9

Amortization of intangible assets from acquisitions

33.6

32.1

33.2

32.0

30.3

 

—

—

—

 

 

Amortization of intangible assets for equity accounted investments

1.4

1.3

1.3

1.3

1.3

 

—

—

—

—

—

Depreciation and other amortization

9.2

8.3

8.3

5.2

5.0

 

8.9

7.0

8.3

5.2

5.0

Interest and lease finance expense

5.1

5.2

4.0

0.8

3.2

 

4.7

3.5

4.0

0.8

3.2

EBITDA

(84.2)

(131.5)

(139.3)

2.1

12.5

 

114.6

107.9

100.0

99.3

94.2

Change in fair value of contingent consideration

12.6

27.1

14.5

(6.1)

13.5

 

—

—

—

—

—

Change in fair value of Preferred Share Liability

42.4

52.3

100.5

21.4

35.0

 

—

—

—

—

—

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

25.7

13.7

1.9

4.3

0.6

 

—

—

—

—

—

Non-controlling interest reclassification (included in Other)

—

—

(2.5)

—

1.2

 

—

—

—

—

—

Accounting for redeemable units (included in SG&A)

99.0

126.0

93.2

54.7

79.4

 

—

—

—

—

—

FX (gains)/losses

(0.1)

(3.1)

2.1

(0.1)

0.6

 

—

—

—

—

—

Severance

0.9

2.2

0.2

0.2

0.7

 

—

—

—

—

—

Amortization of loan guarantees

(0.5)

(0.6)

(3.8)

—

—

 

—

—

—

—

—

Transaction, integration, restructuring and legal

19.1

22.1

36.1

22.7

21.1

 

—

—

—

—

—

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

(0.2)

(0.4)

(2.9)

—

(70.3)

 

—

—

—

—

—

Total adjustments

198.9

239.4

239.3

97.2

81.7

 

—

—

—

—

—

Adjusted EBITDA

114.6

107.9

100.0

99.3

94.2

 

114.6

107.9

100.0

99.3

94.2

Less: Non-controlling interest

38.3

41.9

37.4

37.6

25.4

 

38.3

41.9

37.4

37.6

25.4

Adjusted EBITDA attributable to shareholders

76.3

66.0

62.5

61.6

68.8

 

76.3

66.0

62.5

61.6

68.8

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808003245/en/

Investor Relations Jason Weyeneth, CFA Vice-President, Investor Relations & Strategy 416-681-8779 [e-mail] Media Canada Murray Oxby Vice-President, Communications 416-681-3254 [e-mail] United States Jimmy Moock Managing Partner, StreetCred 610-304-4570 [e-mail] [e-mail]