CIXX CI Financial Corporation

• Diluted EPS of $0.08, adjusted EPS1 of $0.73
• EBITDA of $117.1 million, adjusted EBITDA1 of $237.5 million
• Operating cash flow of $64.8 million, free cash flow1 of $151.5 million
• Total assets of $338.0 billion, up 1.3% over Q2 and up 7.9% year-over-year
• Repurchased 5.6 million shares for $79.8 million
• Paid quarterly dividend of $0.18 a share, totalling $34.6 million
• Acquired two RIAs in October, adding $17.9 billion in assets and increasing U.S. wealth management assets to approximately $167.8 billion

All financial amounts in Canadian dollars at September 30, 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 September 30, 2022.

“CI continues to produce exceptional results in the face of difficult and turbulent market conditions,” said Kurt MacAlpine, CI Chief Executive Officer. “This performance is a result of CI’s transformation over the last three years into a larger, more diversified firm with more resilient and stable revenues and earnings power. At the same time, we continue to be disciplined in managing expenses, with comparable selling, general and administrative expenses declining from the previous quarter despite heightened inflationary pressures.

“In asset management, CI’s Canadian retail businesses had net sales of $0.6 billion – an impressive achievement given the challenging markets,” Mr. MacAlpine said. “This compares to net redemptions of $11.8 billion for the overall Canadian investment fund industry.

“This strength stems from the meaningful changes we have made to our asset management business, including transitioning from a legacy multi-boutique investment team model to a single, fully integrated modern asset management platform, significantly improving relative investment performance, building a more robust and diverse product lineup, and changing our approach to distribution and marketing.

“Our Canadian wealth management business continues to experience strong net flows, reflecting the quality of our advisory businesses and illustrating how investors seek out the most qualified and credible advisors during challenging market and economic environments,” Mr. MacAlpine said. “We have made a major investment in building out capacity at CI Investor Services and are on track to convert over $14 billion in client assets to the CIIS custody platform in the first half of next year, enhancing the service experience for our advisors and driving revenue growth at the firm.

“The growth and development of CI Private Wealth US continues at a robust pace. We recently completed the acquisitions of two high-quality, established RIAs, adding a combined US$13.0 billion in assets to our firm and significantly expanding our presence in the ultra-high-net-worth market in the Northeast. CIPW has hired a highly experienced chief operating officer in Lennie Gullan, who will lead the development of a harmonized operating platform with expanded capabilities and services across our U.S. business.

“We continue to prepare for an IPO of the U.S. wealth management business and will submit a Form S-1 to the Securities and Exchange Commission this month,” Mr. MacAlpine said.

CI also announced that it intends to delist its shares from the New York Stock Exchange at, or prior to, the IPO of the U.S. wealth management business such that it will trade exclusively on the Toronto Stock Exchange, while the U.S. business will trade exclusively on a U.S. exchange. The decision aligns the listings with the primary operational location of each business.

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Total AUM and Client Assets:

 

 

 

 

 

Asset Management AUM

114,196

 

116,065

 

136,271

 

144,247

 

139,380

 

Canada Wealth Management assets

73,976

 

74,128

 

78,957

 

80,633

 

76,859

 

U.S. Wealth Management assets

149,841

 

143,520

 

145,768

 

151,339

 

96,974

 

Total assets

338,014

 

333,712

 

360,996

 

376,219

 

313,213

 

 

 

 

 

 

 

Asset Management Net Inflows:

 

 

 

 

 

Retail

640

 

(381

)

(861

)

142

 

684

 

Institutional

(21

)

(3,203

)

(264

)

(331

)

(126

)

Australia

(377

)

(122

)

(305

)

82

 

159

 

Closed Business

(129

)

(160

)

(203

)

(195

)

(146

)

U.S. Asset Management

(38

)

(195

)

402

 

260

 

250

 

Total

75

 

(4,060

)

(1,231

)

(42

)

821

 

 

 

 

 

 

 

IFRS Results

 

 

 

 

 

Net income attributable to shareholders

14.9

 

156.2

 

138.1

 

123.7

 

43.8

 

Diluted earnings per share

0.08

 

0.81

 

0.70

 

0.62

 

0.22

 

Pretax income

37.8

 

219.0

 

185.8

 

175.1

 

82.4

 

Pretax margin

7.4

%

38.6

%

29.3

%

28.3

%

15.9

%

Operating cash flow before the change in operating assets and liabilities

64.8

 

141.2

 

207.7

 

179.2

 

135.2

 

 

 

 

 

 

 

Adjusted Results

 

 

 

 

 

Adjusted net income

135.9

 

149.1

 

166.8

 

171.0

 

159.2

 

Adjusted diluted earnings per share

0.73

 

0.78

 

0.85

 

0.86

 

0.79

 

Adjusted EBITDA

237.5

 

251.0

 

272.9

 

277.2

 

258.1

 

Adjusted EBITDA margin

43.0

%

44.5

%

46.5

%

47.7

%

47.0

%

Free cash flow

151.5

 

176.4

 

201.6

 

187.1

 

180.9

 

 

 

 

 

 

 

Average shares outstanding

185,601,752

 

191,151,896

 

196,111,771

 

196,816,227

 

199,321,002

 

Ending shares outstanding

183,526,499

 

189,037,762

 

192,987,082

 

197,422,270

 

197,443,135

 

 

 

 

 

 

 

Total debt

3,949

 

3,688

 

3,530

 

3,776

 

3,408

 

Net debt

3,730

 

3,538

 

3,352

 

3,453

 

2,655

 

Net debt to adjusted EBITDA

4.0

 

3.5

 

3.0

 

3.1

 

2.6

 

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 declined to $14.9 million in the quarter from $156.2 million in the second quarter. Excluding non-operating items, adjusted net income declined to $135.9 million in the quarter from $149.1 million in the second quarter of 2022 due to lower revenues as a result of the decline in global financial asset values.

Third quarter total net revenues declined 9.4% to $513.6 million in the quarter from $566.7 million in the second quarter of 2022. Excluding non-operating items, adjusted total net revenue fell 1.8% to $587.5 million, primarily driven by lower revenues from the Asset Management segment due to lower average AUM.

Third quarter total expenses increased 36.9% to $475.8 million in the quarter from $347.7 million in the second quarter of 2022. Excluding non-operating items, adjusted total expenses were up 0.6% to $388.2 million, reflecting disciplined cost controls in a challenging operating environment, offset by the full quarter impact of acquisitions that closed during the second quarter.

Capital allocation

In the third quarter of 2022, CI repurchased 5.6 million shares at a cost of $79.8 million, for an average cost of $14.21 per share, and paid $34.6 million in dividends at a rate of $0.18 per share.

The Board of Directors declared a quarterly dividend of $0.18 per share, payable on April 14, 2023 to shareholders of record on March 31, 2023. The annual dividend rate of $0.72 per share represented a yield of 5.3% on CI’s closing share price of $13.55 on November 9, 2022.

Third quarter business highlights

• CI entered into a long-term strategic partnership with CGI, one of the world’s largest business and IT consulting firms, under which CGI will transform CI’s Canadian investment fund transfer agency operations into an industry-leading platform with enhanced capabilities. Under the agreement, CGI has assumed responsibility for managing CI’s proprietary transfer agency platform and related technology, operations and client services functions. As part of the partnership, CGI retained members of CI’s IT, operations and client services groups, who continue to support CI’s business at CGI.
• Reflecting CI’s strategic priority of modernizing its asset management business, CI Global Asset Management (“CI GAM”) continued its active pace of product innovation and development. CI GAM launched four new mandates during the third quarter focused on areas with high growth potential, including real assets, alternatives, and ESG. The new mandates were CI Auspice Broad Commodity ETF, CI Alternative Multi-Strategy Fund, CI Global Sustainable Infrastructure Fund and CI Global Green Bond Fund, with the latter two offered in both mutual fund and ETF series.

Following quarter-end:

• CI completed the acquisitions of two registered investment advisor (“RIA”) firms in October, adding a combined total of approximately $17.9 billion in assets to CI Private Wealth US and increasing CI’s total U.S. wealth management assets to approximately $167.8 billion. They included:
  • The Boston-based team and assets of Eaton Vance WaterOak Advisors (formerly Eaton Vance Investment Counsel). The team, which has been named CI Eaton Private Wealth, oversees $13.2 billion in client assets, primarily focused on serving ultra-high-net-worth families in New England with comprehensive wealth planning and investment management services.
  • Inverness Counsel, LLC, a New York City-based RIA managing $4.8 billion and specializing in holistic financial and estate planning and investment advisory for a client base comprised of ultra-high-net-worth families. The firm has been rebranded CI Inverness Private Wealth.
• Leonard “Lennie” Gullan joined CI Private Wealth US as Executive Vice President and Chief Operating Officer, effective October 1, 2022. In this role, Mr. Gullan oversees the U.S. business’s daily operations, trading and technology, and leads the firm’s initiatives to integrate and transform operations, platforms and technologies across the CIPW businesses. He also assists in developing the firm’s strategic direction and identifying and evaluating acquisition opportunities. Mr. Gullan joins CIPW from Citadel, where he was a Managing Director and held a variety of senior leadership positions, including COO of Global Equities, and Chief Technology Officer and COO of Core Engineering. Most recently, he was responsible for leading Citadel’s strategic and transformational objectives. Prior to Citadel, he worked at McKinsey & Company, where he consulted for asset and wealth managers on a variety of strategic and M&A related topics. He is a graduate of the University of North Carolina at Chapel Hill and holds an MBA from the University of Chicago Booth School of Business.
• Several CI financial advisors in the United States and Canada were recognized in prestigious industry rankings:
  • Seven CIPW US advisory teams were named to the Barron’s 2022 list of Top 100 RIA Firms. They included: CI BDF Private Wealth, CI Eaton Private Wealth, Dowling & Yahnke Wealth Advisors, Gofen and Glossberg, RegentAtlantic, RGT Wealth Advisors, and CI Segall Bryant & Hamill Private Wealth. In addition, Daniel Roe of Budros Ruhlin Roe was named to the Barron’s list of Top 100 Independent Advisors.
  • Three advisory teams were named to the 2022 Forbes/SHOOK list of Top RIAs: CI Barrett Private Wealth, CI BDF Private Wealth, and RGT Wealth Advisors.
  • Two advisors with CI Assante Wealth Management were named to the Globe and Mail’s list of Canada’s Top Wealth Advisors for 2022, a ranking developed by SHOOK Research, LLC. The advisors are Peter Pomponio of Dorval, Quebec, and Rob McClelland of Thornhill, Ontario.
• On November 1, 2002, CI GAM introduced two new global fixed-income mandates, providing Canadian investors with additional options for income and diversification: CI Global Investment Grade ETF and CI Global Bond Currency Neutral Fund, available in both mutual fund and ETF series.

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EST, 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: 442598):

• 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.

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 the operations of CI Global Asset Management and Australia-based GSFM Pty Ltd.
• Canadian Wealth Management, which includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth (Canada), Northwood Family Office, CI Direct Investing and CI Investment Services.
• U.S. Wealth Management, which includes CI Private Wealth US, a national network of best-in-class wealth management teams.

CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX) and the New York Stock Exchange (NYSE: CIXX). To learn more, visit CI’s website or LinkedIn page.

Barron’s publishes the Top RIA Firms and Top 100 Independent Advisors rankings every year. Advisors who wish to be ranked fill out a 102-question survey about their practice. Barron’s applies its rankings formula to the data to generate a ranking. The formula features three major categories of calculations: (1) Assets (2) Revenue (3) Quality of practice. In each of those categories, Barron’s does multiple subcalculations. Barron’s also considers a wide range of qualitative factors, including the advisors’ experience, their advanced degrees and industry designations, the size, shape, and diversity of their teams, their charitable and philanthropic work and, of course, their compliance records. For more information, visit Barron’s.

The Forbes ranking of America’s Top RIA Firms, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone, virtual and in-person due diligence interviews, and quantitative data. The algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices and approach to working with clients. Portfolio performance is not a criterion due to varying client objectives and lack of audited data. Neither Forbes nor SHOOK receive a fee in exchange for rankings. A full description of SHOOK’s methodology is available here.

The Globe and Mail’s ranking of Canada’s Top Wealth Advisors was developed by SHOOK Research. Advisors are ranked based on the results of data provided during the nomination and research periods. The algorithm is based on a methodology that includes qualitative elements such as in-person, virtual and telephone due-diligence meetings that measure best practices, plus a review of compliance records. It also includes quantitative measures, such as client retention, industry experience and growth rates. Investment performance is not a criterion because client objectives and risk tolerance vary, and advisors rarely have audited performance reports. Advisors are nominated by their firms. Firms do not have any influence or impact on if or where advisors are ranked in Canada’s Top Wealth Advisors program. Neither the Globe and Mail nor SHOOK Research receive compensation in exchange for placement on the ranking. This year’s nomination and research periods took place between February and July 2022. For more information, please see www.SHOOKresearch.com. SHOOK is a registered trademark of SHOOK Research, LLC.

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 September 30

 

 

2022

 

 

2021

 

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

$

 

$

 

REVENUE

 

 

 

 

Canada asset management fees

 

386,734

 

 

460,928

 

Trailer fees and deferred sales commissions

 

(119,229

)

 

(143,401

)

Net asset management fees

 

267,505

 

 

317,527

 

Canada wealth management fees

 

129,189

 

 

132,467

 

U.S. wealth management fees

 

164,071

 

 

108,100

 

Other revenues

 

26,649

 

 

11,158

 

Foreign exchange (losses)

 

(73,897

)

 

(50,264

)

Other gains (losses)

 

102

 

 

(1,102

)

Total net revenues

 

513,619

 

 

517,886

 

 

 

 

 

 

EXPENSES

 

 

 

 

Selling, general and administrative

 

245,574

 

 

201,897

 

Advisor and dealer fees

 

98,293

 

 

103,367

 

Interest and lease finance

 

38,575

 

 

31,604

 

Amortization and depreciation

 

12,975

 

 

10,341

 

Amortization of intangible assets from acquisitions

 

27,725

 

 

16,420

 

Transaction, integration, restructuring and legal settlements

 

13,089

 

 

3,937

 

Change in fair value of contingent consideration

 

22,466

 

 

61,423

 

Other

 

17,094

 

 

6,495

 

Total expenses

 

475,791

 

 

435,484

 

Income before income taxes

 

37,828

 

 

82,402

 

 

 

 

 

 

Provision for (recovery of) income taxes

 

 

 

 

Current

 

47,882

 

 

47,039

 

Deferred

 

(24,413

)

 

(10,072

)

 

 

23,469

 

 

36,967

 

Net income (loss) for the period

 

14,359

 

 

45,435

 

Net income (loss) attributable to non-controlling interests

 

(523

)

 

1,601

 

Net income (loss) attributable to shareholders

 

14,882

 

 

43,834

 

Basic earnings per share attributable to shareholders

$

0.08

 

$

0.22

 

Diluted earnings per share attributable to shareholders

$

0.08

 

$

0.22

 

 

 

 

 

 

Other comprehensive income, net of tax

 

 

 

 

Exchange differences on translation of foreign operations

 

60,858

 

 

34,463

 

Total other comprehensive income, net of tax

 

60,858

 

 

34,463

 

Comprehensive income for the period

 

75,217

 

 

79,898

 

Comprehensive income attributable to non-controlling interests

 

2,024

 

 

2,471

 

Comprehensive income attributable to shareholders

 

73,193

 

 

77,427

 

CONSOLIDATED BALANCE SHEET

 

As at

 

As at

 

 

September 30, 2022

 

December 31, 2021

 

[in thousands of Canadian dollars]

$

 

$

 

ASSETS

 

 

 

 

Current

 

 

 

 

Cash and cash equivalents

220,438

 

230,779

 

Client and trust funds on deposit

1,383,306

 

1,199,904

 

Investments

37,590

 

131,772

 

Accounts receivable and prepaid expenses

276,884

 

272,962

 

Income taxes receivable

25,994

 

3,607

 

Total current assets

1,944,212

 

1,839,024

 

Capital assets, net

56,747

 

52,596

 

Right-of-use assets

145,762

 

142,606

 

Intangibles

6,653,020

 

6,185,237

 

Deferred income taxes

67,713

 

56,901

 

Other assets

415,913

 

383,187

 

Total assets

9,283,367

 

8,659,551

 

LIABILITIES AND EQUITY

 

 

 

 

Current

 

 

 

 

Accounts payable and accrued liabilities

316,157

 

369,081

 

Current portion of provisions and other financial liabilities

384,389

 

572,432

 

Redeemable non-controlling interests

640,816

 

—

 

Dividends payable

66,070

 

71,072

 

Client and trust funds payable

1,390,562

 

1,202,079

 

Income taxes payable

3,531

 

19,035

 

Current portion of long-term debt

400,513

 

444,486

 

Current portion of lease liabilities

21,929

 

20,216

 

Total current liabilities

3,223,967

 

2,698,401

 

Long-term debt

3,548,199

 

3,331,552

 

Provisions and other financial liabilities

185,066

 

379,641

 

Deferred income taxes

481,384

 

480,777

 

Lease liabilities

155,770

 

153,540

 

Total liabilities

7,594,386

 

7,043,911

 

Equity

 

 

 

 

Share capital

1,692,395

 

1,810,153

 

Contributed surplus

39,510

 

28,368

 

Deficit

(118,247

)

(226,715

)

Accumulated other comprehensive income (loss)

45,682

 

(23,289

)

Total equity attributable to the shareholders of the Company

1,659,340

 

1,588,517

 

Non-controlling interests

29,641

 

27,123

 

Total equity

1,688,981

 

1,615,640

 

Total liabilities and equity

9,283,367

 

8,659,551

 

STATEMENT OF CASH FLOWS

For the three-month period ended September 30

 

2022

 

2021

 

[in thousands of Canadian dollars]

$

 

$

 

OPERATING ACTIVITIES (*)

 

 

 

 

Net income for the period

14,359

 

45,435

 

Add (deduct) items not involving cash

 

 

 

 

Other losses (gains)

(102

)

931

 

Change in fair value of contingent consideration

22,466

 

61,423

 

Contingent consideration recorded as compensation 8

3,789

 

4,196

 

Recognition of vesting of redeemable non-controlling interests

907

 

—

 

Equity-based compensation

7,142

 

6,484

 

Amortization and depreciation

12,975

 

10,341

 

Amortization of intangible assets from acquisitions

27,725

 

16,420

 

Deferred income taxes

(24,413

)

(10,072

)

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

64,848

 

135,158

 

Net change in operating assets and liabilities

38,412

 

47,337

 

Cash provided by operating activities

103,260

 

182,495

 

INVESTING ACTIVITIES

 

 

 

 

Purchase of investments

(503

)

(3,589

)

Proceeds on sale of investments

903

 

1,215

 

Additions to capital assets

(4,061

)

(1,123

)

Decrease (increase) in other assets

42,829

 

(2,402

)

Additions to intangibles

(2,449

)

(3,888

)

Cash paid to settle acquisition liabilities

(27,063

)

(43,628

)

Acquisitions, net of cash acquired

—

 

(134,375

)

Cash provided by (used in) investing activities

9,656

 

(187,790

)

FINANCING ACTIVITIES

 

 

 

 

Issuance of long-term debt

75,000

 

—

 

Repurchase of share capital

(79,422

)

(99,100

)

Payment of lease liabilities

(5,864

)

(6,040

)

Net distributions to non-controlling interest

(2,444

)

(745

)

Dividends paid to shareholders

(34,592

)

(36,239

)

Cash used in financing activities

(47,322

)

(142,124

)

Net increase (decrease) in cash and cash equivalents during the period

65,594

 

(147,419

)

Cash and cash equivalents, beginning of period

154,844

 

801,338

 

Cash and cash equivalents, end of period

220,438

 

653,919

 

(*) Included in operating activities are the following:

 

 

 

 

Interest paid

12,919

 

10,887

 

Income taxes paid

70,687

 

39,215

 

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

Quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Beginning AUM

116.1

 

136.3

 

144.2

 

139.4

 

138.2

 

Gross inflows

4.9

 

4.8

 

4.9

 

5.2

 

5.1

 

Gross outflows

(4.8

)

(8.7

)

(6.6

)

(5.5

)

(4.5

)

Net inflows/(outflows)

0.1

 

(3.9

)

(1.6

)

(0.3

)

0.6

 

Acquisitions

—

 

—

 

—

 

—

 

—

 

Market moves and FX

(2.0

)

(16.3

)

(6.3

)

5.2

 

0.6

 

Ending AUM

114.2

 

116.1

 

136.3

 

144.2

 

139.4

 

Proprietary AUM

30.4

 

30.8

 

34.5

 

36.2

 

34.7

 

Non-proprietary AUM

83.7

 

85.2

 

101.7

 

108.1

 

104.7

 

Average assets under management

119.1

 

125.4

 

138.2

 

143.0

 

141.1

 

Annualized organic growth

0.4

%

(11.4

) %

(4.6

) %

(0.9

) %

1.6

%

 

 

 

 

 

 

Gross management fee/average AUM

1.30

%

1.31

%

1.30

%

1.30

%

1.31

%

Net management fee/average AUM

0.88

%

0.89

%

0.88

%

0.88

%

0.88

%

 

 

 

 

 

 

Net Inflows

 

 

 

 

 

Retail

0.6

 

(0.4

)

(0.9

)

0.1

 

0.7

 

Institutional

—

 

(3.2

)

(0.3

)

(0.3

)

(0.1

)

Closed business

(0.1

)

(0.2

)

(0.2

)

(0.2

)

(0.1

)

Total Canada net inflows

0.5

 

(3.7

)

(1.3

)

(0.4

)

0.4

 

Australia

(0.4

)

(0.1

)

(0.3

)

0.1

 

0.2

 

Total net inflows/(outflows)

0.1

 

(3.9

)

(1.6

)

(0.3

)

0.6

 

RETAIL (ex Closed Business)

[billions of dollars]

Quarters ended

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

Sep. 30, 2021

Beginning AUM

95.1

 

108.4

 

114.6

 

110.4

109.1

Net Flows

0.6

 

(0.4

)

(0.9

)

0.1

0.7

Market Move / FX

(1.7

)

(12.9

)

(5.3

)

4.1

0.6

Acquisitions

___

 

___

 

___

 

___

0.2

Ending AUM

94.0

 

95.1

 

108.4

 

114.6

110.4

Average AUM

97.9

 

101.4

 

109.6

 

113.8

111.8

INSTITUTIONAL

[billions of dollars]

Quarters ended

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

Sep. 30, 2021

 

Beginning AUM

8.4

 

12.7

 

13.3

 

13.0

13.0

 

Net Flows

0.0

 

(3.2

)

(0.3

)

0.3

(0.1

)

Market Move / FX

(0.1

)

(1.1

)

(0.3

)

0.6

0.1

 

Acquisitions

___

 

___

 

___

 

___

___

 

Ending AUM

8.3

 

8.4

 

12.7

 

13.3

13.0

 

Average AUM

8.6

 

10.2

 

12.9

 

13.2

13.3

 

AUSTRALIA

[billions of dollars]

Quarters ended

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

Sep. 30, 2021

Beginning AUM

5.1

 

6.6

 

7.3

 

7.0

6.9

Net Flows

(0.4

)

(0.1

)

(0.3

)

0.1

0.1

Market Move / FX

0.0

 

(1.4

)

(0.4

)

0.2

0.0

Acquisitions

___

 

___

 

___

 

___

___

Ending AUM

4.7

 

5.1

 

6.6

 

7.3

7.0

Average AUM

4.9

 

5.8

 

7.0

 

7.1

7.0

CLOSED BUSINESS

[billions of dollars]

Quarters ended

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

Beginning AUM

7.5

 

8.6

 

9.1

 

9.0

 

9.1

 

Net Flows

(0.1

)

(0.2

)

(0.2

)

(0.2

)

(0.2

)

Market Move / FX

(0.1

)

(0.9

)

(0.3

)

0.3

 

(0.0

)

Acquisitions

___

 

___

 

___

 

___

 

___

 

Ending AUM

7.3

 

7.5

 

8.6

 

9.1

 

8.9

 

Average AUM

7.6

 

8.0

 

8.7

 

9.0

 

9.0

 

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Balanced

49.8

50.9

59.4

62.1

60.3

Equity

40.2

41.4

49.3

52.3

50.1

Fixed income

11.2

11.7

13.1

14.2

14.1

Alternatives

3.8

3.6

4.9

5.7

5.0

Cash/Other

4.5

3.4

3.0

2.7

2.8

Total Canada asset management

109.5

111.0

129.7

137.0

132.4

Australia

4.7

5.1

6.6

7.3

7.0

Total asset management segment

114.2

116.1

136.3

144.2

139.4

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Beginning client assets

74.1

 

79.0

 

80.6

 

76.9

 

75.5

 

Acquisitions

—

 

2.4

 

—

 

—

 

—

 

Net flows and market move

(0.2

)

(7.2

)

(1.7

)

3.8

 

1.3

 

Ending client assets

74.0

 

74.1

 

79.0

 

80.6

 

76.9

 

Average client assets

76.0

 

77.7

 

79.0

 

78.9

 

77.0

 

Wealth management fees/average client assets

0.90

%

0.91

%

0.95

%

0.93

%

0.94

%

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Beginning billable client assets

138.8

 

141.2

 

146.4

 

96.1

 

82.9

 

Acquisitions

—

 

7.1

 

1.1

 

49.3

 

10.1

 

Net flows and market move

6.2

 

(9.5

)

(6.3

)

1.0

 

3.1

 

Ending billable client assets

144.9

 

138.8

 

141.2

 

146.4

 

96.1

 

Non-billable client assets

4.9

 

4.8

 

4.6

 

4.9

 

0.9

 

Total client assets

149.8

 

143.5

 

145.8

 

151.3

 

97.0

 

Fees/beginning billable client assets

0.47

%

0.48

%

0.46

%

0.50

%

0.52

%

NON-IFRS MEASURES

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

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

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

• gains or losses related to foreign currency fluctuations on our cash balances
• costs related to our acquisitions including:
  • amortization of intangible assets
  • change in fair value of contingent consideration
  • related advisory fees
  • contingent consideration classified as compensation per IFRS
• restructuring charges including organizational expenses for the establishment of 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 November 10, 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

Sep. 30, 2022

Jun. 30, 2022

Sep. 30, 2021

Net Income

14.4

158.3

45.4

Amortization of intangible assets from acquisitions

27.7

27.4

16.8

Change in fair value of contingent consideration

22.5

(75.0)

61.4

Contingent consideration recorded as compensation

3.8

0.7

4.2

Non-controlling interest reclassification

1.0

0.9

—

CIPW adjustments

11.5

3.1

—

FX (gains)/losses

73.9

32.9

50.3

Transaction, integration, restructuring and legal

13.1

4.6

3.9

Other (gains)/losses

—

(1.2)

—

Trading and bad debt

8.0

—

—

Total adjustments1

161.5

(6.7)

136.6

Tax effect of adjustments

(27.8)

5.6

(21.2)

Less: Non-controlling interest

12.1

8.1

1.6

Adjusted net income

135.9

149.1

159.2

Adjusted earnings per share

0.73

0.78

0.80

Adjusted diluted earnings per share

0.73

0.78

0.79

1. Adjustment 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

Sep. 30, 2022

Jun. 30, 2022

Sep. 30, 2021

Pretax income

37.8

 

219.0

 

82.4

 

Amortization of intangible assets from acquisitions

27.7

 

27.4

 

16.9

 

Depreciation and other amortization

13.0

 

11.9

 

10.3

 

Interest and lease finance expense

38.6

 

36.2

 

31.6

 

EBITDA

117.1

 

294.6

 

141.3

 

Change in fair value of contingent consideration

22.5

 

(75.0

)

61.4

 

Contingent consideration recorded as compensation

3.8

 

0.7

 

4.2

 

Non-controlling interest reclassification

1.0

 

0.9

 

—

 

CIPW adjustments

11.5

 

3.1

 

—

 

FX (gains)/losses

73.9

 

32.9

 

50.3

 

Transaction, integration, restructuring and legal

13.1

 

4.6

 

3.9

 

Other (gains)/losses

—

 

(1.2

)

—

 

Trading and bad debt

8.0

 

—

 

—

 

Total adjustments

133.8

 

(34.1

)

119.8

 

Non-controlling interest

13.4

 

9.5

 

3.0

 

Adjusted EBITDA

237.5

 

251.0

 

258.1

 

 

 

 

 

Reported net revenue

513.6

 

566.7

 

517.9

 

Less: FX gains/(losses)

(73.9

)

(32.9

)

(50.3

)

Less: Non-Operating Other gains/(losses)

—

 

1.2

 

—

 

Less: NCI revenues

35.1

 

34.8

 

19.4

 

Adjusted net revenue

552.4

 

563.5

 

548.7

 

Adjusted EBITDA margin

43.0

%

44.5

%

47.0

%

FREE CASH FLOW

[millions of dollars]

Quarters ended

Sep. 30, 2022

Jun. 30, 2022

Sep. 30, 2021

Cash provided by operating activities

103.3

 

164.1

 

182.5

 

Net change in operating assets and liabilities

38.4

 

22.9

 

47.3

 

Operating cash flow before the change in operating assets and liabilities

64.8

 

141.2

 

135.2

 

FX (gains)/losses

73.9

 

32.9

 

50.3

 

Transaction, integration, restructuring and legal

13.1

 

4.6

 

3.9

 

Trading and bad debt

8.0

 

—

 

—

 

Total adjustments

95.0

 

37.5

 

54.2

 

Tax effect (recovery) of adjustments

(14.1

)

(5.7

)

(5.9

)

Less: Non-controlling interest

(5.8

)

(3.4

)

2.6

 

Free cash flow

151.5

 

176.4

 

180.9

 

NET DEBT

 

 

 

 

 

 

Quarters ended

[millions of dollars]

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Current portion of long-term debt

400.5

314.6

225.3

444.5

74.2

Long-term debt

3,548.2

3,373.5

3,304.7

3,331.6

3,334.2

 

3,948.7

3,688.1

3,530.0

3,776.0

3,408.4

Less:

 

 

 

 

 

Cash and short-term investments

220.4

154.8

186.1

230.8

653.9

Marketable securities

17.8

18.1

20.3

116.9

122.5

Add:

 

 

 

 

 

Regulatory capital and non-controlling interests

19.9

22.4

28.8

25.0

23.1

Net Debt

3,730.3

3,537.5

3,352.4

3,453.4

2,655.1

 

 

 

 

 

 

Adjusted EBITDA

237.5

251.0

272.9

277.2

258.1

Adjusted EBITDA, annualized

942.1

1,006.9

1,106.6

1,099.8

1,024.1

Gross leverage (Gross debt/Annualized adjusted EBITDA)

4.2

3.7

3.2

3.4

3.3

Net leverage (Net debt/Annualized adjusted EBITDA)

4.0

3.5

3.0

3.1

2.6

SUMMARY OF QUARTERLY RESULTS

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

 

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

386.7

 

404.3

 

437.6

 

464.9

 

460.9

 

 

386.7

 

404.3

 

437.6

 

464.9

 

460.9

 

Trailer fees and deferred sales commissions

(119.2

)

(124.0

)

(135.3

)

(143.6

)

(143.4

)

 

(119.2

)

(124.0

)

(135.3

)

(143.6

)

(143.4

)

Net asset management fees

267.5

 

280.3

 

302.3

 

321.3

 

317.5

 

 

267.5

 

280.3

 

302.3

 

321.3

 

317.5

 

Canada wealth management fees

129.2

 

130.1

 

138.2

 

134.9

 

132.5

 

 

129.2

 

130.1

 

138.2

 

134.9

 

132.5

 

U.S. wealth management fees

164.1

 

168.9

 

164.5

 

120.9

 

108.1

 

 

164.1

 

168.9

 

164.5

 

120.9

 

108.1

 

Other revenues

26.6

 

21.2

 

21.6

 

27.3

 

11.2

 

 

26.6

 

21.2

 

21.6

 

27.3

 

11.2

 

FX gains/(losses)

(73.9

)

(32.9

)

11.5

 

3.1

 

(50.3

)

 

—

 

—

 

—

 

—

 

—

 

Other gains/(losses)

0.1

 

(1.1

)

(4.4

)

11.9

 

(1.1

)

 

0.1

 

(2.3

)

(4.4

)

(4.9

)

(1.1

)

Total net revenues

513.6

 

566.7

 

633.8

 

619.3

 

517.9

 

 

587.5

 

598.3

 

622.3

 

599.4

 

568.2

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

245.6

 

238.0

 

259.3

 

214.6

 

201.9

 

 

230.3

 

234.2

 

227.9

 

212.5

 

197.7

 

Advisor and dealer fees

98.3

 

99.7

 

106.9

 

104.8

 

103.4

 

 

98.3

 

99.7

 

106.9

 

104.8

 

103.4

 

Other

17.1

 

4.7

 

3.6

 

5.7

 

6.5

 

 

8.1

 

3.8

 

2.7

 

5.7

 

6.5

 

Interest and lease finance expense

38.6

 

36.2

 

35.9

 

32.5

 

31.6

 

 

38.6

 

36.2

 

35.9

 

32.5

 

31.6

 

Depreciation and other amortization

13.0

 

11.9

 

11.4

 

10.9

 

10.3

 

 

13.0

 

11.9

 

11.4

 

10.4

 

10.0

 

Amortization of intangible assets from acquisitions

27.7

 

27.4

 

24.1

 

18.2

 

16.4

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

13.1

 

4.6

 

3.8

 

13.6

 

3.9

 

 

—

 

—

 

—

 

—

 

—

 

Change in fair value of contingent consideration

22.5

 

(75.0

)

3.1

 

43.9

 

61.4

 

 

—

 

—

 

—

 

—

 

—

 

Total expenses

475.8

 

347.7

 

448.0

 

444.2

 

435.5

 

 

388.2

 

386.0

 

384.8

 

365.9

 

349.2

 

Pretax income

37.8

 

219.0

 

185.8

 

175.1

 

82.4

 

 

199.3

 

212.3

 

237.5

 

233.4

 

219.0

 

Income tax expense

23.5

 

60.7

 

48.3

 

51.3

 

37.0

 

 

51.3

 

55.1

 

59.7

 

62.5

 

58.1

 

Net income

14.4

 

158.3

 

137.5

 

123.7

 

45.4

 

 

148.1

 

157.2

 

177.8

 

171.0

 

160.9

 

Non-controlling interest

(0.5

)

2.1

 

(0.6

)

—

 

1.6

 

 

12.1

 

8.1

 

10.9

 

—

 

1.6

 

Net income attributable to shareholders

14.9

 

156.2

 

138.1

 

123.7

 

43.8

 

 

135.9

 

149.1

 

166.8

 

171.0

 

159.2

 

Basic earnings per share

0.08

 

0.82

 

0.70

 

0.63

 

0.22

 

 

0.73

 

0.78

 

0.85

 

0.87

 

0.80

 

Diluted earnings per share

0.08

 

0.81

 

0.70

 

0.62

 

0.22

 

 

0.73

 

0.78

 

0.85

 

0.86

 

0.79

 

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

 

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Asset management fees

390.9

 

408.9

 

442.5

 

469.6

 

465.6

 

 

390.9

 

408.9

 

442.5

 

469.6

 

465.6

 

Trailer fees and deferred sales commissions

(126.8

)

(131.9

)

(143.9

)

(152.6

)

(152.4

)

 

(126.8

)

(131.9

)

(143.9

)

(152.6

)

(152.4

)

Net asset management fees

264.1

 

277.0

 

298.6

 

316.9

 

313.2

 

 

264.1

 

277.0

 

298.6

 

316.9

 

313.2

 

Canada wealth management fees

—

 

—

 

—

 

—

 

—

 

 

—

 

—

 

—

 

—

 

—

 

US wealth and asset management fees

—

 

—

 

—

 

—

 

—

 

 

—

 

—

 

—

 

—

 

—

 

Other revenues

6.6

 

5.6

 

10.2

 

19.9

 

3.2

 

 

6.6

 

5.6

 

10.2

 

19.9

 

3.2

 

FX gains/(losses)

(74.4

)

(32.8

)

11.4

 

(1.4

)

(19.0

)

 

—

 

—

 

—

 

—

 

—

 

Other gains/(losses)

0.1

 

(1.1

)

(4.4

)

12.0

 

(1.1

)

 

0.1

 

(2.3

)

(4.4

)

(4.8

)

(1.1

)

Total net revenues

196.4

 

248.7

 

315.8

 

347.5

 

296.3

 

 

270.7

 

280.2

 

304.4

 

332.1

 

315.3

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

98.7

 

97.3

 

96.8

 

108.7

 

109.6

 

 

98.7

 

97.3

 

96.8

 

108.7

 

109.6

 

Advisor and dealer fees

—

 

—

 

—

 

—

 

—

 

 

—

 

—

 

—

 

—

 

—

 

Other

7.2

 

—

 

—

 

(0.5

)

1.6

 

 

—

 

—

 

—

 

(0.5

)

1.6

 

Interest and lease finance expense

1.0

 

1.0

 

1.0

 

0.5

 

0.5

 

 

1.0

 

1.0

 

1.0

 

0.5

 

0.5

 

Depreciation and other amortization

5.0

 

5.0

 

5.0

 

5.4

 

5.5

 

 

5.0

 

5.0

 

5.0

 

5.4

 

5.5

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

2.6

 

2.3

 

(0.9

)

10.4

 

0.4

 

 

—

 

—

 

—

 

—

 

—

 

Change in fair value of contingent consideration

3.2

 

(3.9

)

4.0

 

14.2

 

1.9

 

 

—

 

—

 

—

 

—

 

—

 

Total expenses

118.2

 

102.3

 

106.5

 

139.3

 

120.2

 

 

104.6

 

103.3

 

102.8

 

114.1

 

117.2

 

Pretax income

78.2

 

146.4

 

209.3

 

208.1

 

176.1

 

 

166.1

 

176.9

 

201.6

 

218.0

 

198.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

78.2

 

146.4

 

209.3

 

208.1

 

176.1

 

 

166.1

 

176.9

 

201.6

 

218.0

 

198.1

 

Amortization of intangible assets from acquisitions

0.6

 

0.6

 

0.6

 

0.6

 

0.6

 

 

—

 

—

 

—

 

—

 

—

 

Depreciation and other amortization

5.0

 

5.0

 

5.0

 

5.4

 

5.5

 

 

5.0

 

5.0

 

5.0

 

5.4

 

5.5

 

Interest and lease finance expense

1.0

 

1.0

 

1.0

 

0.5

 

0.5

 

 

1.0

 

1.0

 

1.0

 

0.5

 

0.5

 

EBITDA

84.7

 

153.0

 

215.9

 

214.7

 

182.7

 

 

172.1

 

183.0

 

207.6

 

223.9

 

204.1

 

Change in fair value of contingent consideration

3.2

 

(3.9

)

4.0

 

14.2

 

1.9

 

 

—

 

—

 

—

 

—

 

—

 

FX (gains)/losses

74.4

 

32.8

 

(11.4

)

1.4

 

19.0

 

 

—

 

—

 

—

 

—

 

—

 

Transaction, integration, restructuring and legal

2.6

 

2.3

 

(0.9

)

10.4

 

0.4

 

 

—

 

—

 

—

 

—

 

—

 

Other (gains)/losses

—

 

(1.2

)

—

 

(16.8

)

—

 

 

—

 

—

 

—

 

—

 

—

 

Total adjustments

87.3

 

30.0

 

(8.3

)

9.2

 

21.4

 

 

—

 

—

 

—

 

—

 

—

 

Less: Non-controlling interest

0.1

 

0.3

 

0.4

 

0.1

 

0.5

 

 

0.1

 

0.3

 

0.4

 

0.1

 

0.5

 

Adjusted EBITDA

172.0

 

182.7

 

207.2

 

223.8

 

203.6

 

 

172.0

 

182.7

 

207.2

 

223.8

 

203.6

 

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

 

Adjusted Results

For the quarters ended

 

For the quarters ended

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

 

Sep. 30, 2022

Jun. 30, 2022

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

Canada wealth management fees

171.7

 

175.6

 

185.7

 

184.3

 

181.7

 

 

171.7

175.6

 

185.7

184.3

 

181.7

Other revenues

25.5

 

21.3

 

17.1

 

16.0

 

14.8

 

 

25.5

21.3

 

17.1

16.0

 

14.8

FX gains/(losses)

0.5

 

—

 

0.1

 

0.8

 

0.7

 

 

—

—

 

—

—

 

—

Other gains/(losses)

—

 

—

 

—

 

(0.1

)

—

 

 

—

—

 

—

(0.1

)

—

Total net revenues

197.7

 

196.9

 

202.9

 

201.1

 

197.2

 

 

197.2

196.9

 

202.8

200.3

 

196.5

Expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

43.8

 

44.0

 

41.1

 

39.9

 

37.8

 

 

43.6

43.9

 

41.1

39.9

 

37.8

Advisor and dealer fees

132.4

 

135.9

 

145.6

 

145.2

 

143.5

 

 

132.4

135.9

 

145.6

145.2

 

143.5

Other

8.2

 

4.0

 

3.2

 

3.2

 

1.8

 

 

6.3

3.2

 

2.4

3.2

 

1.8

Interest and lease finance expense

—

 

(0.1

)

0.2

 

0.2

 

0.2

 

 

—

(0.1

)

0.2

0.2

 

0.2

Depreciation and other amortization

3.2

 

2.8

 

2.5

 

2.3

 

2.4

 

 

3.2

2.8

 

2.5

2.3

 

2.4

Amortization of intangible assets from acquisitions

2.1

 

2.1

 

1.6

 

1.5

 

1.7

 

 

—

—

 

—

—

 

—

Transaction, integration, restructuring and legal

0.3

 

0.4

 

0.8

 

0.1

 

0.1

 

 

—

—

 

—

—

 

—

Change in fair value of contingent consideration

(0.7

)

(0.6

)

—

 

—

 

—

 

 

—

—

 

—

—

 

—

Total expenses

189.3

 

188.5

 

195.0

 

192.6

 

187.5

 

 

185.6

185.6

 

191.7

191.0

 

185.7

Pretax income

8.4

 

8.4

 

7.9

 

8.5

 

9.7

 

 

11.6

11.4

 

11.1

9.3

 

10.8

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

Pretax income

8.4

 

8.4

 

7.9

 

8.5

 

9.7

 

 

11.6

11.4

 

11.1

9.3

 

10.8

Amortization of intangible assets from acquisitions

2.1

 

2.1

 

1.6

 

1.6

 

1.8

 

 

—

—

 

—

0.1

 

0.1

Depreciation and other amortization

3.2

 

2.8

 

2.5

 

2.3

 

2.4

 

 

3.2

2.8

 

2.5

2.3

 

2.4

Interest and lease finance expense

—

 

(0.1

)

0.2

 

0.2

 

0.2

 

 

—

(0.1

)

0.2

0.2

 

0.2

EBITDA

13.7

 

13.1

 

12.1

 

12.6

 

14.0

 

 

14.9

14.0

 

13.8

11.9

 

13.5

Change in fair value of contingent consideration

(0.7

)

(0.6

)

—

 

—

 

—

 

 

—

—

 

—

—

 

—

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

0.1

 

0.1

 

—

 

—

 

—

 

 

—

—

 

—

—

 

—

CIPW adjustments (included in SG&A)

0.1

 

0.1

 

—

 

—

 

—

 

 

—

—

 

—

—

 

—

FX (gains)/losses

(0.5

)

—

 

(0.1

)

(0.8

)

(0.7

)

 

—

—

 

—

—

 

—

Transaction, integration, restructuring and legal

0.3

 

0.4

 

0.8

 

0.1

 

0.1

 

 

—

—

 

—

—

 

—

NCI reclassification (included in Other)

1.0

 

0.9

 

0.9

 

—

 

—

 

 

—

—

 

—

—

 

—

Total adjustments

1.2

 

0.8

 

1.6

 

(0.7

)

(0.6

)

 

—

—

 

—

—

 

—

Less: Non-controlling interest

1.2

 

1.0

 

0.9

 

(1.5

)

0.7

 

 

1.2

1.0

 

0.9

(1.5

)

0.7

Adjusted EBITDA

13.7

 

13.0

 

12.9

 

13.5

 

12.8

 

 

13.7

13.0

 

12.9

13.5

 

12.8

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

 

IFRS Results

 

 

 

Adjusted Results

 

For the quarters ended

 

 

 

For the quarters ended

 

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

 

 

 

Sep. 30, 2022

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Dec. 31, 2021

 

Sep. 30, 2021

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. wealth management fees

 

164.1

 

 

168.9

 

 

164.5

 

 

120.9

 

 

108.1

 

 

 

 

164.1

 

168.9

 

164.5

 

120.9

 

108.1

Other revenues

 

4.2

 

 

4.5

 

 

4.8

 

 

1.3

 

 

2.6

 

 

 

 

4.2

 

4.5

 

4.8

 

1.3

 

2.6

FX gains/(losses)

 

—

 

 

—

 

 

—

 

 

3.7

 

 

(31.9

)

 

 

 

—

 

—

 

—

 

—

 

—

Total net revenues

 

168.2

 

 

173.4

 

 

169.2

 

 

125.9

 

 

78.8

 

 

 

 

168.3

 

173.5

 

169.2

 

122.2

 

110.7

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

 

117.7

 

 

112.8

 

 

136.9

 

 

80.8

 

 

68.8

 

 

 

 

102.6

 

109.2

 

105.5

 

78.7

 

64.6

Other

 

1.8

 

 

0.7

 

 

0.4

 

 

2.9

 

 

3.1

 

 

 

 

1.8

 

0.7

 

0.4

 

2.9

 

3.1

Interest and lease finance expense

 

0.7

 

 

0.6

 

 

0.5

 

 

0.4

 

 

0.4

 

 

 

 

0.7

 

0.6

 

0.5

 

0.4

 

0.4

Depreciation and other amortization

 

4.8

 

 

4.1

 

 

3.9

 

 

3.1

 

 

2.5

 

 

 

 

4.8

 

4.1

 

3.9

 

3.1

 

2.5

Amortization of intangible assets from acquisitions

 

25.0

 

 

24.7

 

 

21.9

 

 

16.1

 

 

14.1

 

 

 

 

—

 

—

 

—

 

—

 

—

Transaction, integration, restructuring and legal

 

10.2

 

 

2.0

 

 

3.9

 

 

3.1

 

 

3.4

 

 

 

 

—

 

—

 

—

 

—

 

—

Change in fair value of contingent consideration

 

20.0

 

 

(70.5

)

 

(0.9

)

 

29.7

 

 

59.5

 

 

 

 

—

 

—

 

—

 

—

 

—

Total expenses

 

180.1

 

 

74.4

 

 

166.5

 

 

136.1

 

 

151.7

 

 

 

 

109.8

 

114.6

 

110.3

 

85.2

 

70.5

Pretax income

 

(11.9

)

 

99.0

 

 

2.7

 

 

(10.2

)

 

(72.9

)

 

 

 

58.4

 

58.9

 

59.0

 

37.0

 

40.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-IFRS adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax income

 

(11.9

)

 

99.0

 

 

2.7

 

 

(10.2

)

 

(72.9

)

 

 

 

58.4

 

58.9

 

59.0

 

37.0

 

40.2

Amortization of intangible assets from acquisitions

 

25.0

 

 

24.7

 

 

21.9

 

 

16.5

 

 

14.4

 

 

 

 

—

 

—

 

—

 

0.5

 

0.3

Depreciation and other amortization

 

4.8

 

 

4.1

 

 

3.9

 

 

3.1

 

 

2.5

 

 

 

 

4.8

 

4.1

 

3.9

 

3.1

 

2.5

Interest and lease finance expense

 

0.7

 

 

0.6

 

 

0.5

 

 

0.4

 

 

0.4

 

 

 

 

0.7

 

0.6

 

0.5

 

0.4

 

0.4

EBITDA

 

18.6

 

 

128.4

 

 

29.1

 

 

9.9

 

 

(55.6

)

 

 

 

63.9

 

63.5

 

63.4

 

41.0

 

43.4

Change in fair value of contingent consideration

 

20.0

 

 

(70.5

)

 

(0.9

)

 

29.7

 

 

59.5

 

 

 

 

—

 

—

 

—

 

—

 

—

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

 

3.7

 

 

0.6

 

 

18.2

 

 

2.1

 

 

4.2

 

 

 

 

—

 

—

 

—

 

—

 

—

CIPW adjustments (included in SG&A)

 

11.4

 

 

3.0

 

 

13.2

 

 

—

 

 

—

 

 

 

 

—

 

—

 

—

 

—

 

—

FX (gains)/losses

 

—

 

 

—

 

 

—

 

 

(3.7

)

 

31.9

 

 

 

 

—

 

—

 

—

 

—

 

—

Transaction, integration, restructuring and legal

 

10.2

 

 

2.0

 

 

3.9

 

 

3.1

 

 

3.4

 

 

 

 

—

 

—

 

—

 

—

 

—

Total adjustments

 

45.3

 

 

(64.9

)

 

34.3

 

 

31.1

 

 

99.0

 

 

 

 

—

 

—

 

—

 

—

 

—

Less: Non-controlling interest

 

12.1

 

 

8.2

 

 

10.9

 

 

1.0

 

 

1.7

 

 

 

 

12.1

 

8.2

 

10.9

 

1.0

 

1.7

Adjusted EBITDA

 

51.8

 

 

55.4

 

 

52.5

 

 

40.0

 

 

41.7

 

 

 

 

51.8

 

55.4

 

52.5

 

40.0

 

41.7

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005506/en/

Investor Relations Jason Weyeneth, CFA Vice-President, Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com

Media Canada Murray Oxby Vice-President, Communications 416-681-3254 moxby@ci.com

United States Jimmy Moock Managing Partner, StreetCred 610-304-4570 jimmy@streetcredpr.com ci@streetcredpr.com