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CI Financial Reports Financial Results for the First Quarter of 2022

  • Diluted EPS of $0.70 or adjusted EPS1 of $0.85
  • Pre-tax income of $186 million, adjusted EBITDA1 of $273 million
  • Operating cash flow of $207 million, record free cash flow1 of $201 million or $1.02 per share
  • Total assets of $361 billion, a year-over-year increase of 54%
  • Net flow positive as a company on the strength of U.S. and Canadian wealth management
  • Reached agreements to acquire three RIAs with over $21 billion in combined assets
  • Expanded Canadian ultra-high-net-worth wealth management with acquisition of Northwood Family Office
  • $246 million reduction in debt
  • Paid quarterly dividend of $0.18 a share, totalling $35.5 million

All financial amounts in Canadian dollars at March 31, 2022, unless stated otherwise. Financial amounts for the quarter are unaudited.

CI Financial Corp. (“CI”) (TSX: CIX, NYSE: CIXX) today released financial results for the quarter ended March 31, 2022.

“Achieving these strong results during a period of high economic and market uncertainty demonstrates the strength and resilience of our business model,” said Kurt MacAlpine, CI Chief Executive Officer. “Over the past two-and-a-half years, we have transformed and diversified the company, with wealth management now accounting for over 60% of our assets and U.S. wealth management becoming our largest business line by assets. These changes have made CI a larger, stronger firm and are having an increasingly positive impact on our revenues and earnings each quarter.

“The changes we made to our investment management platform continue to pay off – our investment performance relative to our peers is the highest in years and the redemptions in our mutual fund products were 50% lower than in the first quarter of 2021.”

“In Canadian wealth management, we acquired the country’s leading multi-family office in Northwood Family Office Ltd.” Mr. MacAlpine said. “The common theme in our most recent acquisitions is that they are all high-quality wealth management firms focused on the very attractive ultra-high-net-worth segment.”

“We continue to execute on our strategy and achieved significant milestones in U.S. wealth management during the first quarter. We launched the CI Private Wealth partnership, which will be key to driving the profitable growth of that business, and we reached agreements to acquire three registered investment advisors with more than $21 billion in client assets.

“We continue to take a balanced approach to allocating capital between dividends, share repurchases and debt reduction. During the quarter, we prioritized deleveraging and reduced debt by $246 million while also repurchasing shares and paying our regular dividend.”

Starting this quarter, CI has expanded its segment reporting to three segments and changed its income statement format. As CI’s strategy has rapidly evolved over the past two years, the company has reached a level of scale in its U.S. business that warrants separate disclosures and greater visibility into the performance of the business. CI has also expanded its asset management segment disclosures to provide more insight around the composition of assets under management. While prior periods have been restated to conform with the new presentation format, there is no change to consolidated financial results.

Operating and financial data highlights

FINANCIAL AND OPERATING HIGHLIGHTS

[millions of dollars, except share amounts]

 

As of and for the quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Total AUM and Client Assets:

 

 

 

 

 

 

 

 

 

 

Asset Management AUM

 

136,271

 

 

144,247

 

 

139,380

 

 

138,187

 

 

132,626

 

Canada Wealth Management assets

 

78,957

 

 

80,633

 

 

76,859

 

 

75,521

 

 

71,066

 

U.S. Business assets

 

145,768

 

 

151,339

 

 

96,974

 

 

83,764

 

 

31,013

 

Total assets

 

360,996

 

 

376,219

 

 

313,213

 

 

297,472

 

 

234,704

 

 

 

 

 

 

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

 

 

 

 

 

Retail

 

(861

)

 

142

 

 

684

 

 

530

 

 

(601

)

Institutional

 

(264

)

 

(331

)

 

(126

)

 

(360

)

 

(390

)

Australia

 

(305

)

 

82

 

 

159

 

 

(33

)

 

46

 

Closed Business

 

(203

)

 

(195

)

 

(146

)

 

(194

)

 

(222

)

U.S. Asset Management

 

402

 

 

260

 

 

250

 

 

413

 

 

284

 

Total

 

(1,231

)

 

(42

)

 

821

 

 

356

 

 

(883

)

 

 

 

 

 

 

 

 

 

 

 

IFRS Results

 

 

 

 

 

 

 

 

 

 

Net income

 

137.5

 

 

123.7

 

 

45.4

 

 

118.4

 

 

124.8

 

Diluted earnings per share

 

0.70

 

 

0.63

 

 

0.22

 

 

0.58

 

 

0.60

 

Pretax income

 

185.8

 

 

175.1

 

 

82.4

 

 

166.6

 

 

162.2

 

Pretax margin

 

29.3

%

 

28.3

%

 

15.9

%

 

31.7

%

 

31.9

%

Cash flow from operating activities

 

207.7

 

 

179.2

 

 

135.2

 

 

158.1

 

 

177.8

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Results1

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

166.8

 

 

171.0

 

 

159.2

 

 

153.0

 

 

151.6

 

Adjusted diluted earnings per share

 

0.85

 

 

0.86

 

 

0.79

 

 

0.74

 

 

0.72

 

Adjusted EBITDA

 

272.9

 

 

277.2

 

 

258.1

 

 

242.3

 

 

236.3

 

Adjusted EBITDA margin

 

46.4

%

 

47.7

%

 

47.0

%

 

48.4

%

 

50.2

%

Free cash flow

 

201.6

 

 

187.1

 

 

180.9

 

 

164.1

 

 

155.6

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

196,111,771

 

 

196,816,227

 

 

199,321,002

 

 

203,039,536

 

 

207,476,125

 

Ending shares outstanding

 

192,987,082

 

 

197,422,270

 

 

197,443,135

 

 

201,327,517

 

 

203,944,785

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

3,530

 

 

3,776

 

 

3,408

 

 

3,350

 

 

2,201

 

Net debt

 

3,352

 

 

3,453

 

 

2,655

 

 

2,461

 

 

1,856

 

Net debt to adjusted EBITDA

 

3.0

 

 

3.1

 

 

2.6

 

 

2.5

 

 

1.9

 

  1. Free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted EBITDA are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.

Financial highlights

Net income grew to $137.5 million in the quarter from $123.7 million in the fourth quarter. Excluding non-operating items, adjusted net income declined slightly to $166.8 million in the quarter from $171.0 million in the fourth quarter of 2021 as higher earnings in our U.S. Wealth Management segment due to recent acquisitions were offset by lower earnings primarily from our Asset Management segment.

First quarter total net revenues grew 2.3% to $633.8 million in the quarter from $619.3 million in the fourth quarter of 2021. Excluding non-operating items, adjusted total net revenue increased 3.8% to $622.3 million, primarily driven by higher revenues from our U.S. Wealth Management segment due to recent acquisitions, partly offset by lower management fees from our Asset Management segment due to lower average AUM.

First quarter total expenses increased 1.0% to $448.0 million in the quarter from $444.2 million in the fourth quarter of 2021. Excluding non-operating items, adjusted total expenses increased 5.1% to $384.8 million primarily due to acquisitions in our U.S. Wealth Management segment.

Capital allocation

In the first quarter of 2022, CI repurchased 4.5 million shares at a cost of $92.0 million, for an average cost of $20.21 per share, and paid $35.5 million in dividends at a rate of $0.18 per share. In addition, the company reduced debt by $246 million.

The Board of Directors declared a quarterly dividend of $0.18 per share, payable on October 14, 2022 to shareholders of record on September 30, 2022. The annual dividend rate of $0.72 per share represented a yield of 4.8% on CI’s closing share price of $14.68 on May 11, 2022.

First quarter business highlights

  • CI Private Wealth US, LLC (“CIPW”) is the entity through which CI holds its interests in its U.S. RIAs. CIPW is structured as a limited liability company in which CI is majority owner. Certain employees of CIPW and its affiliates subscribed for membership interests in the firm which interests were issued effective January 1, 2022. This unique model aligns the interests of all member partners and incentivizes them to collaborate, realize synergies, and drive the profitable growth of the firm as a whole.
  • CI agreed to acquire three U.S. registered investment advisors (“RIAs”) with combined assets of approximately $21.6 billion. They include:
    • Certain assets of Eaton Vance WaterOak Advisors, formerly Eaton Vance Investment Counsel (“EVIC”). The Boston-based EVIC team joining CI acts as advisor on behalf of families, endowments, foundations and other institutions. The transaction is expected to be completed in the fourth quarter of 2022.
    • Corient Capital Partners, LLC, of Newport Beach, California, which serves ultra-high-net-worth individuals and families across the United States. This transaction was completed on April 29, 2022.
    • Galapagos Partners, LP of Houston, a multi-family office serving wealthy families and individuals. This transaction also closed on April 29, 2022.
  • CI agreed to acquire Toronto-based Northwood Family Office Ltd. (“Northwood”), Canada’s leading multi-family office. The transaction was completed on April 1, 2022. Northwood manages and co-ordinates the integrated financial, investment and personal affairs of wealthy Canadian and global families and oversees approximately $2.2 billion of investment assets.
  • In February 2022, Euromoney announced that Northwood has been ranked as the #1 family office in both Canada and North America in the prestigious Euromoney Private Banking and Wealth Management Survey for 2022.
  • CI expanded its capabilities in digital assets with the acquisition of a minority stake in Newton Crypto Ltd., a Canadian crypto asset trading platform.
  • CI Global Asset Management (“CI GAM”) continued to broaden its ETF lineup with the launch of several thematic ETFs: CI Galaxy Multi-Crypto ETF, CI Bio-Revolution ETF and CI Digital Security ETF.
  • CI GAM received securityholder approval for the merger of 21 mutual funds and six exchange-traded funds into other CI GAM investment funds. The mergers, which were implemented on April 8, 2022, were an important step in modernizing CI’s asset management business as they reduced product duplication and simplified the lineup for CI GAM’s advisor and investor clients.

Following quarter-end:

  • CI announced its intention to sell up to 20% of its U.S. wealth management business via a U.S. initial public offering (“IPO”). CI stated that it intends to use the net proceeds from the IPO to pay down debt, and that a final decision on the IPO size, conditions and timing is pending and will be subject to market conditions.
  • CI subsidiary CI Private Wealth US, LLC applied for a charter to establish and operate a South Dakota trust company. Once chartered, the trust company will offer administrative trust solutions through CI’s U.S. wealth management platform.
  • Products introduced by CI GAM included CI Galaxy Blockchain ETF, CI Galaxy Metaverse ETF and CI Floating Rate Income Fund (ETF Series).

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EDT, led by Chief Executive Officer Kurt 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: 581835):

  • Canada toll-free: 1-833-950-0062
  • United States toll-free: 1-844-200-6205
  • United States (New York local): 1-646-904-5544.
  • All other locations: 1-929-526-1599.

About CI Financial

CI Financial Corp. is an integrated global wealth and asset management company. CI’s primary asset management businesses are CI Global Asset Management (CI Investments Inc.) and GSFM Pty Ltd., and it operates in Canadian wealth management through CI Assante Wealth Management (Assante Wealth Management (Canada) Ltd.), CI Private Counsel LP, Aligned Capital Partners Inc., Northwood Family Office Ltd., CI Direct Investing (WealthBar Financial Services Inc.), and CI Investment Services Inc.

CI’s U.S. wealth management businesses consist of Barrett Asset Management, LLC, Balasa Dinverno Foltz LLC, Bowling Portfolio Management LLC, Brightworth, LLC, BRR OpCo, LLC (Budros, Ruhlin & Roe), The Cabana Group, LLC, Corient Capital Partners, LLC, CPWM, LLC (Columbia Pacific Wealth Management), Congress Wealth Management LLC, Dowling & Yahnke, LLC, Doyle Wealth Management, LLC, Galapagos Partners, LP, Gofen & Glossberg, LLC, Matrix Capital Advisors, LLC, McCutchen Group LLC, OCM Capital Partners, LLC, Portola Partners Group LLC, Radnor Financial Advisors, LLC, RegentAtlantic Capital, LLC, The Roosevelt Investment Group, LLC, RGT Wealth Advisors, LLC, R.H. Bluestein & Co., Segall Bryant & Hamill, LLC, Stavis & Cohen Private Wealth, LLC, and Surevest LLC.

CI is listed on the Toronto Stock Exchange under CIX and on the New York Stock Exchange under CIXX. Further information is available at www.cifinancial.com.

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 and its intention to conduct an IPO of its US wealth management business. 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 these forward-looking statements include that CI will proceed with the IPO, that all outstanding acquisitions will be completed and their asset levels will remain stable, that the investment fund industry will remain stable and that interest rates will remain relatively stable. 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 risk that the IPO may not occur in its expected timeframe or at all, 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. 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.

CONSOLIDATED STATEMENT OF INCOME

 

 

For the three-month period ended March 31

 

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

 

2022

$

 

2021

$

REVENUE

Canada asset management fees

 

 

 

 

437,623

 

 

 

 

 

 

425,122

 

 

Trailer fees and deferred sales commissions

 

 

(135,289

)

 

 

(132,700

)

Net asset management fees

 

 

302,334

 

 

 

292,422

 

Canada wealth management fees

 

 

138,246

 

 

 

119,570

 

U.S. wealth management fees

 

 

164,479

 

 

 

44,688

 

Other revenues

 

 

21,646

 

 

 

26,684

 

Foreign exchange gains

 

 

11,469

 

 

 

20,201

 

Other gains (losses)

 

 

(4,424

)

 

 

4,136

 

Total net revenues

 

 

633,750

 

 

 

507,701

 

 

EXPENSES

Selling, general and administrative

 

 

 

 

 

 

259,633

 

 

 

 

 

 

 

 

 

151,889

 

 

 

Advisor and dealer fees

 

 

106,908

 

 

 

95,092

 

Interest and lease finance

 

 

35,876

 

 

 

21,322

 

Amortization and depreciation

 

 

11,376

 

 

 

10,029

 

Amortization of intangible assets from acquisitions

 

 

24,083

 

 

 

9,554

 

Transaction, integration, restructuring and legal settlements

 

 

3,800

 

 

 

854

 

Change in fair value of contingent consideration

 

 

3,088

 

 

 

22,209

 

Other

 

 

3,226

 

 

 

34,603

 

Total expenses

 

 

447,990

 

 

 

345,552

 

Income before income taxes

 

 

185,760

 

 

 

162,149

 

 

Provision for income taxes

Current

 

 

 

 

 

 

47,741

 

 

 

 

 

 

 

 

 

49,636

 

 

 

Deferred

 

 

511

 

 

 

(12,275

)

 

 

 

48,252

 

 

 

37,361

 

Net income for the period

 

 

137,508

 

 

 

124,788

 

Net income (loss) attributable to non-controlling interests

 

 

(639

)

 

 

613

 

Net income attributable to shareholders

 

 

138,147

 

 

 

124,175

 

Basic earnings per share attributable to shareholders

 

$

0.70

 

 

$

0.60

 

Diluted earnings per share attributable to shareholders

 

$

0.70

 

 

$

0.59

 

 

Other comprehensive loss, net of tax

Exchange differences on translation of foreign operations

 

 

 

 

 

 

(6,721

 

 

)

 

 

 

 

 

 

(15,953

 

 

)

Total other comprehensive loss, net of tax

 

 

(6,721

)

 

 

(15,953

)

Comprehensive income for the period

 

 

130,787

 

 

 

108,835

 

Comprehensive income (loss) attributable to non-controlling interests

 

 

(1,052

)

 

 

294

 

Comprehensive income attributable to shareholders

 

 

131,839

 

 

 

108,541

 

 

CONSOLIDATED BALANCE SHEET

     

 

 

[in thousands of Canadian dollars]

 

As at

March 31, 2022

$

 

As at

December 31, 2021

$

ASSETS

 

 

 

 

Current

 

 

 

 

Cash and cash equivalents

 

186,051

 

 

230,779

 

Client and trust funds on deposit

 

1,347,616

 

 

1,199,904

 

Investments

 

35,311

 

 

131,772

 

Accounts receivable and prepaid expenses

 

275,167

 

 

272,962

 

Income taxes receivable

 

3,607

 

 

3,607

 

Total current assets

 

1,847,752

 

 

1,839,024

 

Capital assets, net

 

52,676

 

 

52,596

 

Right-of-use assets

 

136,827

 

 

142,606

 

Intangibles

 

6,113,366

 

 

6,185,237

 

Deferred income taxes

 

60,162

 

 

56,901

 

Other assets

 

452,646

 

 

383,187

 

Total assets

 

8,663,429

 

 

8,659,551

 

LIABILITIES AND EQUITY

 

 

 

 

Current

 

 

 

 

Accounts payable and accrued liabilities

 

303,990

 

 

369,081

 

Current portion of provisions and other financial liabilities

 

293,951

 

 

572,432

 

Redeemable non-controlling interests

 

564,064

 

 

 

Dividends payable

 

69,475

 

 

71,072

 

Client and trust funds payable

 

1,363,874

 

 

1,202,079

 

Income taxes payable

 

13,621

 

 

19,035

 

Current portion of long-term debt

 

225,268

 

 

444,486

 

Current portion of lease liabilities

 

19,617

 

 

20,216

 

Total current liabilities

 

2,853,860

 

 

2,698,401

 

Long-term debt

 

3,304,702

 

 

3,331,552

 

Provisions and other financial liabilities

 

246,998

 

 

379,641

 

Deferred income taxes

 

478,849

 

 

480,777

 

Lease liabilities

 

148,253

 

 

153,540

 

Total liabilities

 

7,032,662

 

 

7,043,911

 

Equity

 

 

 

 

Share capital

 

1,777,507

 

 

1,810,153

 

Contributed surplus

 

31,018

 

 

28,368

 

Deficit

 

(172,743

)

 

(226,715

)

Accumulated other comprehensive loss

 

(29,352

)

 

(23,289

)

Total equity attributable to the shareholders of the Company

 

1,606,430

 

 

1,588,517

 

Non-controlling interests

 

24,337

 

 

27,123

 

Total equity

 

1,630,767

 

 

1,615,640

 

Total liabilities and equity

 

8,663,429

 

 

8,659,551

 

STATEMENT OF CASH FLOWS

 

[in thousands of Canadian dollars]

 

2022

$

 

2021

$

OPERATING ACTIVITIES (*)

 

 

 

 

Net income for the period

 

137,508

 

 

124,788

 

Add (deduct) items not involving cash

 

 

 

 

Other gains (losses)

 

4,424

 

 

(4,214

)

Change in fair value of contingent consideration

 

3,088

 

 

22,209

 

Contingent consideration recorded as compensation

 

18,210

 

 

 

Recognition of vesting of redeemable non-controlling interests

 

3,926

 

 

 

Equity-based compensation

 

4,536

 

 

3,008

 

Amortization and depreciation

 

35,459

 

 

19,583

 

Deferred income taxes

 

511

 

 

(12,275

)

Loss on repurchases of long-term debt

 

 

 

24,708

 

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

 

207,662

 

 

177,807

 

Net change in operating assets and liabilities

 

(52,856

)

 

11,869

 

Cash provided by operating activities

 

154,806

 

 

189,676

 

INVESTING ACTIVITIES

 

 

 

 

Purchase of investments

 

(30

)

 

(104

)

Proceeds on sale of investments

 

94,659

 

 

 

Additions to capital assets

 

(3,311

)

 

(1,881

)

Increase in other assets

 

2,148

 

 

1,905

 

Additions to intangibles

 

(1,564

)

 

(3,615

)

Cash paid to settle acquisition liabilities

 

(18,288

)

 

 

Acquisitions, net of cash acquired

 

(5,729

)

 

(2,314

)

Cash provided by (used in) investing activities

 

67,885

 

 

(6,009

)

FINANCING ACTIVITIES

 

 

 

 

Repayment of long-term debt

 

(297,500

)

 

(549,695

)

Issuance of long-term debt

 

80,000

 

 

331,836

 

Repurchase of long-term debt

 

 

 

(45,953

)

Repurchase of share capital

 

(91,038

)

 

(112,744

)

Payment of lease liabilities

 

(5,210

)

 

(3,934

)

Redeemable non-controlling interest

 

83,330

 

 

 

Net distributions to non-controlling interests

 

(1,489

)

 

(512

)

Dividends paid to shareholders

 

(35,511

)

 

(37,869

)

Cash used by financing activities

 

(267,418

)

 

(418,871

)

Net decrease in cash and cash equivalents during the period

 

(44,727

)

 

(235,204

)

Cash and cash equivalents, beginning of period

 

230,778

 

 

483,598

 

Cash and cash equivalents, end of period

 

186,051

 

 

248,394

 

(*) Included in operating activities are the following:

 

 

 

 

Interest paid

 

9,665

 

 

18,983

 

Income taxes paid

 

52,277

 

 

44,855

 

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning AUM

 

144.2

 

 

139.4

 

 

138.2

 

 

132.6

 

 

129.6

 

Gross inflows

 

4.9

 

 

5.2

 

 

5.1

 

 

6.1

 

 

5.7

 

Gross outflows

 

6.6

 

 

5.5

 

 

4.5

 

 

6.1

 

 

6.9

 

Net inflows/(outflows)

 

(1.6

)

 

(0.3

)

 

0.6

 

 

(0.1

)

 

(1.2

)

Acquisitions

 

 

 

 

 

 

 

0.2

 

 

 

Market move and FX

 

(6.3

)

 

5.2

 

 

0.6

 

 

5.5

 

 

4.2

 

Ending AUM

 

136.3

 

 

144.2

 

 

139.4

 

 

138.2

 

 

132.6

 

Proprietary AUM

 

34.5

 

 

36.2

 

 

34.7

 

 

34.5

 

 

32.7

 

Non-proprietary AUM

 

101.8

 

 

108.0

 

 

104.7

 

 

103.7

 

 

99.9

 

Average assets under management

 

138.2

 

 

143.0

 

 

141.1

 

 

135.9

 

 

131.6

 

Annualized organic growth

 

(4.6

) %

 

(0.9

) %

 

1.6

%

 

(0.2

) %

 

(3.7

) %

 

 

 

 

 

 

 

 

 

 

 

Gross management fee/average AUM

 

1.30

%

 

1.30

%

 

1.31

%

 

1.31

%

 

1.32

%

Net management fee/average AUM

 

0.88

%

 

0.88

%

 

0.88

%

 

0.88

%

 

0.89

%

 

 

 

 

 

 

 

 

 

 

 

Net Inflows

 

 

 

 

 

 

 

 

 

 

Retail

 

(0.9

)

 

0.1

 

 

0.7

 

 

0.5

 

 

(0.6

)

Institutional

 

(0.3

)

 

(0.3

)

 

(0.1

)

 

(0.4

)

 

(0.4

)

Closed business

 

(0.2

)

 

(0.2

)

 

(0.1

)

 

(0.2

)

 

(0.2

)

Total Canada net inflows

 

(1.3

)

 

(0.4

)

 

0.4

 

 

 

 

(1.2

)

Australia

 

(0.3

)

 

0.1

 

 

0.2

 

 

 

 

 

Total net inflows/(outflows)

 

(1.6

)

 

(0.3

)

 

0.6

 

 

(0.1

)

 

(1.2

)

RETAIL (ex Closed Business)

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning AUM

 

114.6

 

 

110.4

 

109.1

 

103.9

 

95.1

 

Net Flows

 

(0.9

)

 

0.1

 

0.7

 

0.5

 

(0.6

)

Market Move / FX

 

(5.3

)

 

4.1

 

0.6

 

4.5

 

9.4

 

Acquisitions

 

___

 

 

___

 

0.2

 

___

 

___

 

Ending AUM

 

108.4

 

 

114.6

 

110.4

 

109.1

 

103.9

 

Average AUM

 

109.6

 

 

113.8

 

111.8

 

106.8

 

102.8

 

INSTITUTIONAL

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning AUM

 

13.3

 

 

13.0

 

13.0

 

 

12.7

 

 

12.6

 

Net Flows

 

(0.3

)

 

0.3

 

(0.1

)

 

(0.4

)

 

(0.4

)

Market Move / FX

 

(0.3

)

 

0.6

 

0.1

 

 

0.7

 

 

0.5

 

Acquisitions

 

___

 

 

___

 

___

 

 

___

 

 

___

 

Ending AUM

 

12.7

 

 

13.3

 

13.0

 

 

13.0

 

 

12.7

 

Average AUM

 

12.9

 

 

13.2

 

13.3

 

 

13.0

 

 

12.8

 

AUSTRALIA

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning AUM

 

7.3

 

 

7.0

 

6.9

 

7.1

 

 

7.0

Net Flows

 

(0.3

)

 

0.1

 

0.1

 

(0.0

)

 

0.0

Market Move / FX

 

(0.4

)

 

0.2

 

0.0

 

(0.2

)

 

0.1

Acquisitions

 

___

 

 

___

 

___

 

___

 

 

___

Ending AUM

 

6.6

 

 

7.3

 

7.0

 

6.9

 

 

7.1

Average AUM

 

7.0

 

 

7.1

 

7.0

 

7.1

 

 

7.1

CLOSED BUSINESS

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning AUM

 

9.1

 

 

9.0

 

 

9.1

 

 

8.9

 

 

8.9

 

Net Flows

 

(0.2

)

 

(0.2

)

 

(0.2

)

 

(0.2

)

 

(0.2

)

Market Move / FX

 

(0.3

)

 

0.3

 

 

(0.0

)

 

0.4

 

 

0.3

 

Acquisitions

 

___

   

___

   

___

   

___

   

___

 

Ending AUM

 

8.6

 

 

9.1

 

 

8.9

 

 

9.1

 

 

8.9

 

Average AUM

 

8.7

 

 

9.0

 

 

9.0

 

 

9.0

 

 

8.9

 

AUM BY ASSET CLASS

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Balanced

 

59.4

 

62.1

 

60.3

 

60.3

 

58.5

Equity

 

49.3

 

52.3

 

50.1

 

49.8

 

46.9

Fixed income

 

13.1

 

14.2

 

14.1

 

13.9

 

13.3

Alternatives

 

4.9

 

5.7

 

5.0

 

4.3

 

3.6

Cash/Other

 

3.0

 

2.7

 

2.8

 

2.9

 

3.2

Total Canada asset management

 

129.7

 

137.0

 

132.4

 

131.3

 

125.5

Australia

 

6.6

 

7.3

 

7.0

 

6.9

 

7.1

Total asset management segment

 

136.3

 

144.2

 

139.4

 

138.2

 

132.6

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning client assets

 

80.6

 

 

76.9

 

 

75.5

 

 

71.1

 

 

67.3

 

Acquisitions

 

 

 

 

 

 

 

 

 

 

Net flows and market move

 

(1.7

)

 

3.8

 

 

1.3

 

 

4.5

 

 

3.8

 

Ending client assets

 

79.0

 

 

80.6

 

 

76.9

 

 

75.5

 

 

71.1

 

Average client assets

 

79.0

 

 

78.9

 

 

77.0

 

 

73.1

 

 

68.8

 

Wealth management fees/average client assets

 

0.95

%

 

0.93

%

 

0.94

%

 

0.91

%

 

0.97

%

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Beginning billable client assets

 

146.4

 

 

96.1

 

 

82.9

 

 

30.7

 

 

29.0

 

Acquisitions

 

1.1

 

 

49.3

 

 

10.1

 

 

49.5

 

 

0.0

 

Net flows and market move

 

(6.3

)

 

1.0

 

 

3.1

 

 

2.7

 

 

1.7

 

Ending billable client assets

 

141.2

 

 

146.4

 

 

96.1

 

 

82.9

 

 

30.7

 

Unbillable client assets

 

4.6

 

 

4.9

 

 

0.9

 

 

0.8

 

 

0.4

 

Total client assets

 

145.8

 

 

151.3

 

 

97.0

 

 

83.8

 

 

31.0

 

Fees/beginning billable client assets1

 

0.46

%

 

0.50

%

 

0.52

%

 

0.71

%

 

0.63

%

12Q/21 adjusted for the timing of Segall Bryant & Hamill acquisition

 

 

 

 

NON-IFRS MEASURES

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

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

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

  • gains or losses related to foreign currency fluctuations on our cash balances
  • costs related to our acquisitions including:
    • amortization of intangible assets
    • change in fair value of contingent consideration
    • related advisory fees
    • contingent consideration classified as compensation per IFRS
  • restructuring charges including organizational expenses for the establishment of CIPW
  • legal provisions for a class action related to market timing
  • certain gains or losses in assets and investments
  • costs related to issuing or retiring debt obligations
  • expenses associated with 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 May 12, 2022 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

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Mar. 31, 2021

Net Income

 

137.5

 

 

123.7

 

 

124.8

 

Amortization of intangible assets from acquisitions

 

24.1

 

 

18.7

 

 

9.9

 

Change in fair value of contingent consideration

 

3.1

 

 

43.9

 

 

22.2

 

Contingent consideration recorded as compensation

 

 

 

2.1

 

 

 

CIPW adjustments

 

32.2

 

 

 

 

 

FX (gains)/losses

 

(11.5

)

 

(3.1

)

 

(20.2

)

Transaction, integration, restructuring and legal

 

3.8

 

 

13.6

 

 

0.8

 

Other (gains)/losses

 

 

 

(16.8

)

 

7.1

 

Bond redemption costs

 

 

 

 

 

24.7

 

Total adjustments1

 

51.7

 

 

58.4

 

 

44.5

 

Tax effect of adjustments

 

(11.5

)

 

(11.1

)

 

(17.0

)

Less: Non-controlling interest

 

10.9

 

 

 

 

0.7

 

Adjusted net income

 

166.8

 

 

171.0

 

 

151.6

 

Adjusted earnings per share

 

0.85

 

 

0.87

 

 

0.73

 

Adjusted diluted earnings per share

 

0.85

 

 

0.86

 

 

0.72

 

1Adjustment effects on income statement line items: bond redemption costs are included in other expense, CIPW adjustments and contingent consideration recorded as compensation are included in SG&A, amortization of intangible assets from acquisitions, change in fair value of contingent consideration, FX (gains)/losses, other (gains)/losses, and bond redemption costs are included in the line items of the same description.

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

[millions of dollars, except per share amounts]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Mar. 31, 2021

Pretax income

 

185.8

 

 

175.1

 

 

162.2

 

Amortization of intangible assets from acquisitions

 

24.1

 

 

18.7

 

 

9.9

 

Depreciation and other amortization

 

11.4

 

 

10.9

 

 

10.0

 

Interest and lease finance expense

 

35.9

 

 

32.5

 

 

21.3

 

EBITDA

 

257.1

 

 

237.2

 

 

203.4

 

Change in fair value of contingent consideration

 

3.1

 

 

43.9

 

 

22.2

 

Contingent consideration recorded as compensation

 

18.2

 

 

2.1

 

 

 

CIPW adjustments

 

3.9

 

 

 

 

 

FX (gains)/losses

 

(11.5

)

 

(3.1

)

 

(20.2

)

Transaction, integration, restructuring and legal

 

3.8

 

 

13.6

 

 

0.8

 

Other (gains)/losses

 

 

 

(16.8

)

 

7.1

 

Bond redemption costs

 

 

 

 

 

24.7

 

Total adjustments

 

17.5

 

 

39.6

 

 

34.6

 

Non-controlling interest

 

1.8

 

 

(0.4

)

 

1.7

 

Adjusted EBITDA

 

272.9

 

 

277.2

 

 

236.3

 

 

 

 

 

 

 

 

Reported net revenue

 

633.8

 

 

619.3

 

 

507.7

 

Less: FX gains/(losses)

 

11.5

 

 

3.1

 

 

20.2

 

Less: Non-Operating Other gains/(losses)

 

 

 

16.8

 

 

 

Less: NCI revenues

 

34.5

 

 

17.9

 

 

17.0

 

Adjusted net revenue

 

587.8

 

 

581.5

 

 

470.5

 

Adjusted EBITDA margin

 

46.4

%

 

47.7

%

 

50.2

%

FREE CASH FLOW

[millions of dollars]

 

Quarters ended

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Mar. 31, 2021

Cash provided by operating activities

 

154.8

 

 

163.7

 

 

189.7

 

Net change in operating assets and liabilities

 

52.9

 

 

15.5

 

 

(11.8

)

Operating cash flow before the change in operating assets and liabilities

 

207.7

 

 

179.2

 

 

177.8

 

FX (gains)/losses

 

(11.5

)

 

(3.1

)

 

(20.2

)

Transaction, integration, restructuring and legal

 

3.8

 

 

13.6

 

 

0.8

 

Other (gains)/losses

 

 

 

 

 

7.1

 

Total adjustments

 

(7.7

)

 

10.5

 

 

(12.3

)

Tax effect (recovery) of adjustments

 

1.2

 

 

(2.6

)

 

(8.3

)

Less: Non-controlling interest

 

(0.4

)

 

 

 

1.7

 

Free cash flow

 

201.6

 

 

187.1

 

 

155.6

 

NET DEBT

 

 

 

 

 

 

 

 

 

 

 

 

Quarters ended

[millions of dollars]

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Jun. 30, 2021

 

Mar. 31, 2021

Current portion of long-term debt

 

225.3

 

444.5

 

74.2

 

 

Long-term debt

 

3,304.7

 

3,331.6

 

3,350.2

 

3,350.2

 

2,200.9

 

 

3,530.0

 

3,776.0

 

3,408.4

 

3,350.2

 

2,200.9

Less:

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

186.1

 

230.8

 

653.9

 

801.3

 

248.4

Marketable securities

 

20.4

 

116.9

 

122.5

 

121.1

 

122.0

Add:

 

 

 

 

 

 

 

 

 

 

Regulatory capital and non-controlling interests

 

28.8

 

25.0

 

23.1

 

33.4

 

25.9

Net Debt

 

3,352.3

 

3,453.4

 

2,655.1

 

2,461.2

 

1,856.4

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

272.9

 

277.2

 

258.1

 

242.3

 

236.3

Adjusted EBITDA, annualized

 

1,106.8

 

1,099.8

 

1,024.1

 

971.9

 

958.3

Gross leverage (Gross debt/Annualized adjusted EBITDA)

 

3.2

 

3.4

 

3.3

 

3.4

 

2.3

Net leverage (Net debt/Annualized adjusted EBITDA)

 

3.0

 

3.1

 

2.6

 

2.5

 

1.9

SUMMARY OF QUARTERLY RESULTS

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

 

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

437.6

 

464.9

 

460.9

 

441.1

 

425.1

 

 

437.6

 

464.9

 

460.9

 

441.1

 

425.1

 

Trailer fees and deferred sales commissions

(135.3

)

(143.6

)

(143.4

)

(137.7

)

(132.7

)

 

(135.3

)

(143.6

)

(143.4

)

(137.7

)

(132.7

)

Net asset management fees

302.3

 

321.3

 

317.5

 

303.5

 

292.4

 

 

302.3

 

321.3

 

317.5

 

303.5

 

292.4

 

Canada wealth management fees

138.2

 

134.9

 

132.5

 

119.9

 

119.6

 

 

138.2

 

134.9

 

132.5

 

119.9

 

119.6

 

U.S. wealth management fees

164.5

 

120.9

 

108.1

 

71.4

 

44.7

 

 

164.5

 

120.9

 

108.1

 

71.4

 

44.7

 

Other revenues

21.6

 

27.3

 

11.2

 

18.0

 

26.7

 

 

21.6

 

27.3

 

11.2

 

18.0

 

26.7

 

FX gains/(losses)

11.5

 

3.1

 

(50.3

)

8.2

 

20.2

 

 

 

 

 

 

 

Other gains/(losses)

(4.4

)

11.9

 

(1.1

)

3.8

 

4.1

 

 

(4.4

)

(4.9

)

(1.1

)

2.5

 

11.2

 

Total net revenues

633.8

 

619.3

 

517.9

 

524.7

 

507.7

 

 

622.3

 

599.4

 

568.2

 

515.2

 

494.6

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

259.6

 

214.6

 

201.9

 

173.9

 

151.9

 

 

241.4

 

212.5

 

197.7

 

173.0

 

151.9

 

Advisor and dealer fees

106.9

 

104.8

 

103.4

 

93.4

 

95.1

 

 

106.9

 

104.8

 

103.4

 

93.4

 

95.1

 

Other

3.2

 

5.7

 

6.5

 

5.3

 

34.6

 

 

(10.8

)

5.7

 

6.5

 

5.0

 

9.9

 

Interest and lease finance expense

35.9

 

32.5

 

31.6

 

24.2

 

21.3

 

 

35.9

 

32.5

 

31.6

 

24.2

 

21.3

 

Depreciation and other amortization

11.4

 

10.9

 

10.3

 

9.7

 

10.0

 

 

11.4

 

10.4

 

10.0

 

9.4

 

9.7

 

Amortization of intangible assets from acquisitions

24.1

 

18.2

 

16.4

 

11.7

 

9.6

 

 

 

 

 

 

 

Transaction, integration, restructuring and legal

3.8

 

13.6

 

3.9

 

17.5

 

0.8

 

 

 

 

 

 

 

Change in fair value of contingent consideration

3.1

 

43.9

 

61.4

 

22.4

 

22.2

 

 

 

 

 

 

 

Total expenses

448.0

 

444.2

 

435.5

 

358.2

 

345.6

 

 

384.8

 

365.9

 

349.2

 

305.1

 

287.9

 

Pretax income

185.8

 

175.1

 

82.4

 

166.6

 

162.2

 

 

237.5

 

233.4

 

219.0

 

210.1

 

206.7

 

Income tax expense

48.3

 

51.3

 

37.0

 

48.2

 

37.4

 

 

59.7

 

62.5

 

58.1

 

56.4

 

54.3

 

Net income

137.5

 

123.7

 

45.4

 

118.4

 

124.8

 

 

177.8

 

171.0

 

160.9

 

153.8

 

152.4

 

Non-controlling interest

(0.6

)

 

1.6

 

0.8

 

0.6

 

 

10.9

 

 

1.6

 

0.8

 

0.7

 

Net income attributable to shareholders

138.1

 

123.7

 

43.8

 

117.6

 

124.2

 

 

166.8

 

171.0

 

159.2

 

153.0

 

151.6

 

Basic earnings per share

0.70

 

0.63

 

0.22

 

0.58

 

0.60

 

 

0.85

 

0.87

 

0.80

 

0.75

 

0.73

 

Diluted earnings per share

0.70

 

0.62

 

0.22

 

0.57

 

0.59

 

 

0.85

 

0.86

 

0.79

 

0.74

 

0.72

 

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

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

 

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

442.5

 

469.6

 

465.6

 

445.5

 

429.2

 

 

442.5

 

469.6

 

465.6

 

445.5

 

429.2

 

Trailer fees and deferred sales commissions

(143.9

)

(152.6

)

(152.4

)

(146.3

)

(141.1

)

 

(143.9

)

(152.6

)

(152.4

)

(146.3

)

(141.1

)

Net asset management fees

298.6

 

316.9

 

313.2

 

299.3

 

288.2

 

 

298.6

 

316.9

 

313.2

 

299.3

 

288.2

 

Other revenues

10.2

 

19.9

 

3.2

 

12.2

 

20.8

 

 

10.2

 

19.9

 

3.2

 

12.2

 

20.8

 

FX gains/(losses)

11.4

 

(1.4

)

(19.0

)

1.2

 

8.2

 

 

 

 

 

 

 

Other gains/(losses)

(4.4

)

12.0

 

(1.1

)

3.8

 

4.2

 

 

(4.4

)

(4.8

)

(1.1

)

2.5

 

4.2

 

Total net revenues

315.8

 

347.5

 

296.3

 

316.5

 

321.4

 

 

304.4

 

332.1

 

315.3

 

313.9

 

313.2

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

96.8

 

108.7

 

109.6

 

104.9

 

102.8

 

 

96.8

 

108.7

 

109.6

 

104.9

 

102.8

 

Other

 

(0.5

)

1.6

 

0.2

 

0.3

 

 

 

(0.5

)

1.6

 

0.2

 

0.3

 

Interest and lease finance expense

1.0

 

0.5

 

0.5

 

0.6

 

0.6

 

 

1.0

 

0.5

 

0.5

 

0.6

 

0.6

 

Depreciation and other amortization

5.0

 

5.6

 

5.5

 

5.5

 

6.7

 

 

5.0

 

5.6

 

5.5

 

5.5

 

6.7

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.5

 

 

 

 

 

 

 

Transaction, integration, restructuring and legal

(0.9

)

10.4

 

0.4

 

14.6

 

0.1

 

 

 

 

 

 

 

Change in fair value of contingent consideration

4.0

 

14.2

 

1.9

 

10.0

 

 

 

 

 

 

 

 

Total expenses

106.5

 

139.4

 

120.2

 

136.4

 

111.1

 

 

102.8

 

114.2

 

117.2

 

111.1

 

110.4

 

Pretax income

209.3

 

208.0

 

176.1

 

180.1

 

210.3

 

 

201.6

 

217.9

 

198.1

 

202.8

 

202.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

209.3

 

208.0

 

176.1

 

180.1

 

210.3

 

 

201.6

 

217.9

 

198.1

 

202.8

 

202.8

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.5

 

 

 

 

 

 

 

Depreciation and other amortization

5.0

 

5.6

 

5.5

 

5.5

 

6.7

 

 

5.0

 

5.6

 

5.5

 

5.5

 

6.7

 

Interest and lease finance expense

1.0

 

0.5

 

0.5

 

0.6

 

0.6

 

 

1.0

 

0.5

 

0.5

 

0.6

 

0.6

 

EBITDA

215.9

 

214.7

 

182.7

 

186.7

 

218.1

 

 

207.6

 

223.9

 

204.1

 

208.8

 

210.0

 

Change in fair value of contingent consideration

4.0

 

14.2

 

1.9

 

10.0

 

 

 

 

 

 

 

 

FX (gains)/losses

(11.4

)

1.4

 

19.0

 

(1.2

)

(8.2

)

 

 

 

 

 

 

Transaction, integration, restructuring and legal

(0.9

)

10.4

 

0.4

 

14.6

 

0.1

 

 

 

 

 

 

 

Other (gains)/losses

 

(16.8

)

 

(1.4

)

 

 

 

 

 

 

 

Total adjustments

(8.3

)

9.2

 

21.4

 

22.1

 

(8.1

)

 

 

 

 

 

 

Less: Non-controlling interest

0.4

 

0.1

 

0.5

 

0.2

 

 

 

0.4

 

0.1

 

0.5

 

0.2

 

 

Adjusted EBITDA

207.2

 

223.8

 

203.6

 

208.6

 

210.0

 

 

207.2

 

223.8

 

203.6

 

208.6

 

210.0

 

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

 

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

185.7

 

184.3

 

181.7

 

166.5

 

164.4

 

 

185.7

184.3

 

181.7

166.5

164.4

Other revenues

17.1

 

16.0

 

14.8

 

13.9

 

13.9

 

 

17.1

16.0

 

14.8

13.9

13.9

FX gains/(losses)

0.1

 

0.8

 

0.7

 

0.7

 

1.2

 

 

 

Other gains/(losses)

 

(0.1

)

 

 

 

 

(0.1

)

Total net revenues

202.9

 

201.1

 

197.2

 

181.1

 

179.5

 

 

202.8

200.3

 

196.5

180.4

178.3

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

41.4

 

39.9

 

37.8

 

35.7

 

34.6

 

 

41.4

39.9

 

37.8

35.7

34.6

Advisor and dealer fees

145.6

 

145.2

 

143.5

 

131.3

 

131.4

 

 

145.6

145.2

 

143.5

131.3

131.4

Other

2.9

 

3.2

 

1.8

 

1.3

 

8.5

 

 

2.9

3.2

 

1.8

1.3

1.4

Interest and lease finance expense

0.2

 

0.2

 

0.2

 

0.1

 

0.1

 

 

0.2

0.2

 

0.2

0.1

0.1

Depreciation and other amortization

2.5

 

2.3

 

2.4

 

2.5

 

2.4

 

 

2.5

2.3

 

2.4

2.5

2.4

Amortization of intangible assets from acquisitions

1.6

 

1.5

 

1.7

 

1.3

 

1.0

 

 

 

Transaction, integration, restructuring and legal

0.8

 

0.1

 

0.1

 

 

0.5

 

 

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

Total expenses

195.0

 

192.6

 

187.5

 

172.3

 

178.4

 

 

192.6

191.0

 

185.7

171.0

169.8

Pretax income

7.9

 

8.5

 

9.7

 

8.8

 

1.1

 

 

10.2

9.3

 

10.8

9.5

8.5

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

7.9

 

8.5

 

9.7

 

8.8

 

1.1

 

 

10.2

9.3

 

10.8

9.5

8.5

Amortization of intangible assets from acquisitions

1.6

 

1.6

 

1.8

 

1.4

 

1.1

 

 

0.1

 

0.1

0.1

0.1

Depreciation and other amortization

2.5

 

2.3

 

2.4

 

2.5

 

2.4

 

 

2.5

2.3

 

2.4

2.5

2.4

Interest and lease finance expense

0.2

 

0.2

 

0.2

 

0.1

 

0.1

 

 

0.2

0.2

 

0.2

0.1

0.1

EBITDA

12.1

 

12.6

 

14.0

 

12.8

 

4.6

 

 

12.9

11.9

 

13.5

12.2

11.0

FX (gains)/losses

(0.1

)

(0.8

)

(0.7

)

(0.7

)

(1.2

)

 

 

Transaction, integration, restructuring and legal

0.8

 

0.1

 

0.1

 

 

0.5

 

 

 

Other (gains)/losses

 

 

 

 

7.1

 

 

 

Total adjustments

0.8

 

(0.7

)

(0.6

)

(0.6

)

6.4

 

 

 

Less: Non-controlling interest

 

(1.5

)

0.7

 

0.5

 

0.3

 

 

(1.5

)

0.7

0.5

0.3

Adjusted EBITDA

12.9

 

13.5

 

12.8

 

11.6

 

10.7

 

 

12.9

13.5

 

12.8

11.6

10.7

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

 

Mar.

31,

2022

Dec.

31,

2021

Sep.

30,

2021

Jun.

30,

2021

Mar.

31,

2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

164.5

 

120.9

 

108.1

 

71.4

 

44.7

 

 

164.5

120.9

108.1

71.4

44.7

 

Other revenues

4.8

 

1.3

 

2.6

 

0.9

 

0.5

 

 

4.8

1.3

2.6

0.9

0.5

 

FX gains/(losses)

 

3.7

 

(31.9

)

6.3

 

10.7

 

 

 

 

 

 

 

Other gains/(losses)

 

 

 

 

(0.1

)

 

(0.1

)

Total net revenues

169.2

 

125.9

 

78.8

 

78.6

 

55.9

 

 

169.2

122.2

110.7

72.3

45.2

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

136.9

 

80.8

 

68.8

 

46.9

 

27.3

 

 

114.8

78.7

64.6

46.0

27.3

 

Advisor and dealer fees

 

 

 

 

 

 

 

Other

0.4

 

2.9

 

3.1

 

3.5

 

1.1

 

 

0.4

2.9

3.1

3.5

1.1

 

Interest and lease finance expense

0.5

 

0.4

 

0.4

 

0.2

 

0.1

 

 

0.5

0.4

0.4

0.2

0.1

 

Depreciation and other amortization

3.9

 

3.1

 

2.5

 

1.7

 

1.0

 

 

3.9

3.1

2.5

1.7

1.0

 

Amortization of intangible assets from acquisitions

21.9

 

16.1

 

14.1

 

9.8

 

8.0

 

 

 

 

 

 

 

Transaction, integration, restructuring and legal

3.9

 

3.1

 

3.4

 

2.9

 

0.2

 

 

 

 

 

 

 

Change in fair value of contingent consideration

(0.9

)

29.7

 

59.5

 

12.4

 

22.2

 

 

 

Total expenses

166.5

 

136.1

 

151.7

 

77.4

 

59.9

 

 

119.6

85.2

70.5

51.4

29.5

 

Pretax income

2.7

 

(10.2

)

(72.9

)

1.2

 

(4.0

)

 

49.7

37.0

40.2

20.9

15.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

2.7

 

(10.2

)

(72.9

)

1.2

 

(4.0

)

 

49.7

37.0

40.2

20.9

15.7

 

Amortization of intangible assets from acquisitions

21.9

 

16.5

 

14.4

 

10.1

 

8.3

 

 

0.5

0.3

0.3

0.3

 

Depreciation and other amortization

3.9

 

3.1

 

2.5

 

1.7

 

1.0

 

 

3.9

3.1

2.5

1.7

1.0

 

Interest and lease finance expense

0.5

 

0.4

 

0.4

 

0.2

 

0.1

 

 

0.5

0.4

0.4

0.2

0.1

 

EBITDA

29.1

 

9.9

 

(55.6

)

13.2

 

5.4

 

 

54.1

41.0

43.4

23.1

17.0

 

Change in fair value of contingent consideration

(0.9

)

29.7

 

59.5

 

12.4

 

22.2

 

 

 

Contingent consideration recorded as compensation

18.2

 

2.1

 

4.2

 

0.9

 

 

 

 

CIPW adjustments

3.9

 

 

 

 

 

 

 

FX (gains)/losses

 

(3.7

)

31.9

 

(6.3

)

(10.7

)

 

 

Transaction, integration, restructuring and legal

3.9

 

3.1

 

3.4

 

2.9

 

0.2

 

 

 

Total adjustments

25.0

 

31.1

 

99.0

 

9.9

 

11.6

 

 

 

Less: Non-controlling interest

1.3

 

1.0

 

1.7

 

1.0

 

1.4

 

 

1.3

1.0

1.7

1.0

1.4

 

Adjusted EBITDA

52.8

 

40.0

 

41.7

 

22.1

 

15.6

 

 

52.8

40.0

41.7

22.1

15.6

 

 

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