(in $ thousands except where | Q4 | Q3 | Q4 | FY | FY | |
2023 | 2023 | 2022 | 2023 | 2022 | ||
End of period AUM (in $ billions) | 161.7 | 155.3 | 158.5 | 161.7 | 158.5 | |
Average AUM (in $ billions) | 158.4 | 160.7 | 159.7 | 161.5 | 162.0 | |
IFRS Financial Measures | ||||||
Total revenues | 210,972 | 158,740 | 184,697 | 686,646 | 681,439 | |
Base management fees | 147,371 | 147,645 | 147,390 | 592,237 | 602,801 | |
Net earnings 1 | 39,418 | 11,067 | 2,509 | 58,452 | 25,353 | |
Non-IFRS Financial Measures | ||||||
Adjusted EBITDA 2 | 77,621 | 43,942 | 52,825 | 205,854 | 191,838 | |
Adjusted EBITDA margin 2 | 36.8 % | 27.7 % | 28.6 % | 30.0 % | 28.2 % | |
Adjusted net earnings 1,2 | 50,163 | 23,651 | 33,083 | 126,066 | 121,765 | |
LTM Free Cash Flow 2 | 89,212 | 98,056 | 58,944 | 89,212 | 58,944 | |
Note: Certain totals, subtotals and percentages may not reconcile due to rounding. |
"Although 2023 started with uncertain headwinds, we are very pleased with full year results and the improvement over the previous fiscal year with assets under management ending
"The strength in financial markets in the fourth quarter combined with outperformance in several of our investment strategies resulted in a year-over-year increase in total revenues. Driven in part by strong performance fees during the quarter, we saw an improvement in our adjusted EBITDA margin to 30% for the year. The significant increase in our adjusted EBITDA and adjusted net earnings also enabled us to further reduce our net debt in the fourth quarter and to generate a last twelve-month free cash flow which covered our dividend payments for 2023." said
Assets Under Management (in $ millions, unless otherwise indicated)
By Platform |
| New | Lost | Net Contributions | Net Organic Growth3 | Market and Other4 |
|
Public Markets, excluding AUM | 91,684 | 1,271 | (1,519) | (1,518) | (1,766) | 8,066 | 97,984 |
Public Markets AUM sub-advised | 44,870 | 30 | (2,626) | (606) | (3,202) | 3,563 | 45,231 |
Public Markets - Total | 136,554 | 1,301 | (4,145) | (2,124) | (4,968) | 11,629 | 143,215 |
Private Markets | 18,763 | 298 | (182) | (174) | (58) | (227) | 18,478 |
Total | 155,317 | 1,599 | (4,327) | (2,298) | (5,026) | 11,402 | 161,693 |
By Distribution Channel |
| New | Lost | Net Contributions | Net Organic | Market and Other4 |
|
Institutional | 83,789 | 1,059 | (1,230) | (1,369) | (1,540) | 6,356 | 88,605 |
Financial Intermediaries | 57,759 | 353 | (2,971) | (534) | (3,152) | 4,477 | 59,084 |
Private Wealth | 13,769 | 187 | (126) | (395) | (334) | 569 | 14,004 |
Total | 155,317 | 1,599 | (4,327) | (2,298) | (5,026) | 11,402 | 161,693 |
By Platform |
| New | Lost | Net Contributions | Net Organic | Market and Other4 | Strategic5 |
|
Public Markets, excluding AUM | 91,046 | 3,781 | (4,093) | (2,549) | (2,861) | 9,799 | — | 97,984 |
Public Markets AUM sub-advised by PineStone | 49,219 | 153 | (9,324) | (1,562) | (10,733) | 7,265 | (520) | 45,231 |
Public Markets - Total | 140,265 | 3,934 | (13,417) | (4,111) | (13,594) | 17,064 | (520) | 143,215 |
Private Markets | 18,241 | 1,690 | (727) | (649) | 314 | (77) | — | 18,478 |
Total | 158,506 | 5,624 | (14,144) | (4,760) | (13,280) | 16,987 | (520) | 161,693 |
By Distribution Channel |
| New | Lost | Net Contributions | Net Organic Growth3 | Market and Other4 | Strategic5 |
|
Institutional | 84,330 | 3,532 | (5,232) | (2,379) | (4,079) | 8,874 | (520) | 88,605 |
Financial Intermediaries | 60,275 | 1,089 | (7,996) | (1,165) | (8,072) | 6,881 | — | 59,084 |
Private Wealth | 13,901 | 1,003 | (916) | (1,216) | (1,129) | 1,232 | — | 14,004 |
Total | 158,506 | 5,624 | (14,144) | (4,760) | (13,280) | 16,987 | (520) | 161,693 |
- AUM increased by
$6.4 billion or 4.1% compared toSeptember 30, 2023 :- A favourable market impact for both fixed income and equity mandates in the second half of the quarter of
$11.6 billion was partly offset by negative net organic growth of$5.0 billion during the quarter.
- A favourable market impact for both fixed income and equity mandates in the second half of the quarter of
Included in the negative net organic growth of
- AUM increased by
$3.2 billion or 2.0% compared toDecember 31, 2022 :- A favourable market impact increased AUM by
$17.6 billion on a year-to-date basis, which was partly offset by negative net organic growth of$13.3 billion . Negative net organic growth for the year included$13.6 billion in Public Markets partly offset by positive net organic growth in Private Markets, primarily from net new mandates. The sale of three Public Markets funds that were sub-advised by PineStone to New York Life Investments impacted AUM by$0.5 billion , and income distributions from Private Markets funds reduced AUM by$0.6 billion . - Negative net organic growth included
$10.7 billion of outflows connected to AUM sub-advised by PineStone, of which, to our knowledge,$6.3 billion related to AUM that transferred directly to PineStone,$3.0 billion related to lost mandates which did not transfer to PineStone and$1.4 billion ongoing client relationships where clients simply rebalanced their overall investment in strategies sub-advised by PineStone.- Of the
$10.7 billion of outflows connected to AUM sub-advised by PineStone,$4.9 billion related to a large Canadian Financial Intermediary client, of which approximately$3.5 billion was transferred directly to PineStone. Excluding this client, management expects the AUM reduction from lost mandates transferring directly to PineStone to be in the range of$2 to$3 billion per year.
- Of the
- A favourable market impact increased AUM by
Fourth Quarter Financial Highlights
- Revenue increased by
$52.3 million , or 33.0% compared to Q3 2023. The increase was driven by higher performance fees in both Public and Private Markets, primarily fromEurope , higher share of earnings in joint ventures, as well as higher commitment and transaction fees. Base management fees in Public Markets were slightly lower due to lower average AUM but were essentially offset by higher base management fees in Private Markets.- Revenue increased by
$26.3 million , or 14.2% compared to Q4 2022. The increase was primarily due to higher performance fees in Public and Private Markets, higher other revenues, and higher share of earnings in joint ventures, partly offset by lower commitment and transaction fees. Base management fees were relatively flat.
- Revenue increased by
- Adjusted EBITDA increased by
$33.7 million or 76.8% compared to Q3 2023, primarily due to higher revenue from performance fees, partly offset by the connected higher sub-advisory fees, higher variable compensation and higher professional fees.- Adjusted EBITDA increased by
$24.8 million , or 47.0% compared to Q4 2022, primarily due to higher revenue from performance fees and lower professional fees, partly offset by higher variable compensation costs and sub-advisory fees.
- Adjusted EBITDA increased by
- Adjusted net earnings increased by
$26.5 million compared to Q3 2023, primarily due to higher revenues and favourable foreign exchange revaluation, partly offset by higher SG&A, excluding share-based compensation and higher income tax expense.- Adjusted net earnings increased by
$17.1 million , or 51.7% compared to Q4 2022, primarily due to higher revenues and favourable foreign exchange revaluation, partly offset by higher income tax expense, higher interest on long-term debt and debentures, and higher SG&A, excluding share-based compensation.
- Adjusted net earnings increased by
- Net earnings attributable to the Company's shareholders increased by
$28.3 million compared to Q3 2023, primarily due to higher revenues, insurance proceeds received during the quarter, the reversal of a claims provision and favourable foreign exchange revaluation. These increases in earnings were partly offset by higher SG&A, higher income tax expense, along with higher restructuring, acquisition related and other costs.- Net earnings attributable to the Company's shareholders increased by
$36.9 million compared to Q4 2022, primarily due to higher revenues, insurance proceeds received, the timing of provisioning and reversals of certain claims, and lower severance recorded in restructuring, acquisition related and other costs. These increases in earnings were partly offset by higher income tax expense.
- Net earnings attributable to the Company's shareholders increased by
- LTM free cash flow increased by
$30.3 million or 51.4% compared to the corresponding period of 2022. The increase was mainly due to higher cash generated by operating activities and lower cash used in the settlement of purchase price obligations, partly offset by lower distributions received from joint ventures and associates and higher interest paid on long-term debt and debentures.
Year-to-Date Financial Highlights
The Company's financial highlights reflect the following major items for the year ended
- Revenue increased by
$5.2 million , primarily due to higher base management fees in Private Markets from higher average AUM, higher performance fees, and higher other revenues, partly offset by lower base management fees in Public Markets from lower average AUM, lower share of earnings in joint ventures and associates, and lower commitment and transaction fees. - Adjusted EBITDA increased by
$14.1 million , or 7.4% primarily due to higher revenues, lower employee compensation costs, lower sub-advisory fees and lower professional fees, partly offset by higher travel and marketing costs. - Adjusted net earnings increased by
$4.3 million , or 3.5% primarily due to higher revenues, lower SG&A, excluding share-based compensation, and favourable foreign exchange revaluation, partly offset by higher interest on long-term debt and higher income tax expense. - Net earnings attributable to the Company's shareholders increased by
$33.1 million . Items which impacted the year endedDecember 31, 2023 compared to the same period last year included:- A higher contribution from adjusted EBITDA of
$14.1 million ; - Insurance proceeds of
$4.4 million received during the year related to a certain claim - A provision expense of
$3.7 million in the current year compared to a provision expense of$16.0 million in the prior year related to certain claims; and - A gain on sale of funds to
New York Life investments of$5.1 million , in connection with the strategic distribution partnership entered into in the first quarter of 2023. - Interest on lease liabilities, foreign exchange revaluation and other financial charges was
$7.1 million lower, primarily due to favourable foreign exchange revaluation. - Amortization and depreciation was
$3.7 million lower due to certain intangible assets being fully amortized in the prior year.
- A higher contribution from adjusted EBITDA of
- Partly offset by:
$12.1 million of higher interest on long-term debt and debentures and$9.5 million of higher income tax expense.
Leadership Announcements
The Company appointed Maxime Ménard as President and CEO, Fiera Canada and Global Private Wealth, effective
Dividend Declared
On
Additional details relating to the company's operating results can be found in the Company Management's Discussion and Analysis for the three months and year ended
Conference Call
Live
The conference call will also be accessible via webcast in the Investor Relations section of Fiera Capital's website, under Events and Presentations.
Replay
An audio replay of the call will be available until
The webcast will remain available for three months following the call and can be accessed in the Investor Relations section of
Footnotes
1) Attributable to the Company's shareholders.
2) Earnings before interest, taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (basic and diluted), and Last Twelve Months ("LTM") Free Cash Flow are not standardized measures prescribed by International Financial Reporting Standards ("IFRS"), and are therefore unlikely to be comparable to similar measures presented by other companies. We have included non-IFRS measures to provide investors with supplemental measures of our operating and financial performance. We believe non-IFRS measures are important supplemental metrics of operating and financial performance because they highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers, many of which present non-IFRS measures when reporting their results. Management also uses non-IFRS measures in order to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets and to assess its ability to meet future debt service, capital expenditure and working capital requirements.
Adjusted EBITDA (in $ thousands except for per share data)
FOR THE THREE MONTHS ENDED | FOR THE YEARS ENDED | ||||
2023 | 2023 | 2022 | 2023 | 2022 | |
Net earnings | 42,864 | 12,236 | 4,467 | 66,273 | 31,522 |
Income tax expense | 11,985 | 2,353 | 1,675 | 19,625 | 10,123 |
Amortization and depreciation | 13,406 | 13,381 | 15,074 | 53,935 | 57,622 |
Interest on long-term debt and | 11,710 | 12,485 | 9,908 | 46,003 | 33,924 |
Interest on lease liabilities, foreign | (1,220) | 3,805 | 1,118 | 1,005 | 8,081 |
EBITDA | 78,745 | 44,260 | 32,242 | 186,841 | 141,272 |
Restructuring, acquisition related | 3,100 | 1,511 | 7,323 | 16,069 | 19,256 |
Accretion and change in fair value | 106 | (537) | (6,105) | (2,936) | (5,122) |
Share-based compensation | 2,474 | 3,423 | 2,470 | 12,355 | 20,639 |
Loss (gain) on investments, net | (124) | 419 | 893 | (835) | 1,447 |
Gain on sale of funds | — | (5,139) | — | (5,139) | — |
Other expenses (income) | (6,680) | 5 | 16,002 | (501) | 14,346 |
Adjusted EBITDA | 77,621 | 43,942 | 52,825 | 205,854 | 191,838 |
Per share basic | 0.73 | 0.41 | 0.51 | 1.98 | 1.87 |
Per share diluted | 0.56 | 0.31 | 0.50 | 1.56 | 1.84 |
Weighted average shares | 106,116 | 105,921 | 102,927 | 104,020 | 102,448 |
Weighted average shares | 139,543 | 141,294 | 104,640 | 131,783 | 104,190 |
Reconciliation to Adjusted Net Earnings (in $ thousands)
FOR THE THREE MONTHS ENDED | FOR THE YEARS ENDED | ||||
2023 | 2023 | 2022 | 2023 | 2022 | |
Net earnings attributable to the | 39,418 | 11,067 | 2,509 | 58,452 | 25,353 |
Amortization and depreciation | 13,406 | 13,381 | 15,074 | 53,935 | 57,622 |
Restructuring, acquisition related and | 3,100 | 1,511 | 7,323 | 16,069 | 19,256 |
Accretion and change in fair value of | 364 | (340) | (5,784) | (1,916) | (3,213) |
Share-based compensation | 2,474 | 3,423 | 2,470 | 12,355 | 20,639 |
Gain on sale of funds | — | (5,139) | — | (5,139) | — |
Other expenses (income) | (6,680) | 5 | 16,002 | (501) | 14,346 |
Tax effect of above-mentioned items | (1,919) | (257) | (4,511) | (7,189) | (12,238) |
Adjusted net earnings attributable | 50,163 | 23,651 | 33,083 | 126,066 | 121,765 |
Per share – basic | |||||
Net earnings | 0.37 | 0.10 | 0.02 | 0.56 | 0.25 |
Adjusted net earnings | 0.47 | 0.22 | 0.32 | 1.21 | 1.19 |
Per share – diluted | |||||
Net earnings | 0.30 | 0.09 | 0.02 | 0.50 | 0.24 |
Adjusted net earnings | 0.37 | 0.18 | 0.32 | 1.00 | 1.17 |
Weighted average shares | 106,116 | 105,921 | 102,927 | 104,020 | 102,448 |
Weighted average shares | 139,543 | 141,294 | 104,640 | 131,783 | 104,190 |
Reconciliation to LTM Free Cash Flow (in $ thousands)
FOR THE THREE MONTHS ENDED | ||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | |
Net cash generated by (used in) operating | 57,599 | 79,708 | 14,123 | (13,463) | 66,722 | 25,686 | 46,853 | (25,951) |
Settlement of purchase price obligations and | — | — | (1,500) | — | — | (3,476) | (23,901) | — |
Proceeds on promissory note | 1,500 | 1,510 | 1,460 | 1,536 | 1,497 | 1,455 | 1,375 | 1,334 |
Distributions received from joint ventures and | 1,723 | 1,617 | 502 | 4,252 | 2,513 | 3,621 | 4,338 | 6,330 |
Dividends and other distributions to NCI | (3,167) | — | (5,895) | — | 10 | — | (1,753) | (1,425) |
Lease payments, net of lease inducements | (4,690) | (3,837) | (4,925) | (4,510) | (4,607) | (4,396) | (4,221) | (4,306) |
Interest paid on long-term debt and | (6,299) | (12,174) | (12,019) | (10,379) | (9,713) | (8,191) | (8,299) | (7,427) |
Other restructuring costs | 2,075 | 1,226 | 452 | 1,180 | 1,056 | 470 | 160 | 418 |
Acquisition related and other costs | 420 | 130 | 341 | 716 | 527 | 153 | 680 | 1,412 |
Free Cash Flow | 49,161 | 68,180 | (7,461) | (20,668) | 58,005 | 15,322 | 15,232 | (29,615) |
LTM Free Cash Flow | 89,212 | 98,056 | 45,198 | 67,891 | 58,944 | 92,472 | 109,828 | 145,257 |
3) | Net Organic Growth represents the sum of New, Lost and Net Contributions. |
4) | Market and Other includes the impact of market changes, income distributions and foreign exchange. |
5) | Relates to the sale of three Public Markets funds that were sub-advised by PineStone to New York Life Investments, in connection with the strategic distribution partnership. |
Forward-Looking Statements
This document contains forward-looking statements relating to future events or future performance and reflecting management's expectations or beliefs regarding future events including business and economic conditions, outlook and trends and
By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions, forecasts, projections, expectations or conclusions will not prove to be accurate. As a result, the Company does not guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors, many of which are beyond
The preceding list of risk factors is not exhaustive. When relying on forward-looking statements in this document and any other disclosure made by
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