(in $ thousands except where | Q2 | Q1 | Q2 | YTD | YTD | |
2023 | 2023 | 2022 | 2023 | 2022 | ||
End of period AUM (in $ billions) | 164.2 | 164.7 | 156.7 | 164.2 | 156.7 | |
Average AUM (in $ billions) | 164.5 | 163.9 | 163.0 | 164.2 | 170.3 | |
IFRS Financial Measures | ||||||
Total revenues | 159,843 | 157,091 | 163,845 | 316,934 | 336,188 | |
Base management fees | 149,793 | 147,428 | 150,451 | 297,221 | 309,762 | |
Net earnings 1 | 10,484 | (2,517) | 10,759 | 7,967 | 14,178 | |
Non-IFRS Financial Measures | ||||||
Adjusted EBITDA 2 | 45,468 | 38,823 | 46,437 | 84,291 | 93,765 | |
Adjusted EBITDA margin 2 | 28.4 % | 24.7 % | 28.3 % | 26.6 % | 27.9 % | |
Adjusted net earnings 1,2 | 28,708 | 23,544 | 31,555 | 52,252 | 64,807 | |
LTM Free Cash Flow 2 | 45,198 | 67,891 | 109,828 | 45,198 | 109,828 |
Note: Certain totals, subtotals and percentages may not reconcile due to rounding. |
"Our investment teams continue to be amongst the leaders in the industry in terms of investment performance, with 95% and 91% of equity and fixed income strategies beating their benchmark over a one-year period respectively. Despite this, the environment for flows remained challenged during the quarter given the persistent macroeconomic uncertainty and clients' continued overweighting to cash. However, we maintained our consistent track record of positive organic growth in our Private Markets platform." said
"As we navigate uncertain market conditions in 2023, we are seeing the results of our collective teams' efforts towards a prudent approach to cost management with an adjusted EBITDA margin of 28.4%, a marked improvement from last quarter and a return to consistent levels compared to the same period last year." said
Assets Under Management (in $ millions, unless otherwise indicated)
By Platform | New | Lost | Net Contributions | Net Organic | Market and Other4 | ||
Public Markets, excluding AUM | 95,397 | 653 | (551) | (1,583) | (1,481) | 1,292 | 95,208 |
Public Markets AUM sub-advised | 50,560 | 3 | — | (1,911) | (1,908) | 1,444 | 50,096 |
Public Markets - Total | 145,957 | 656 | (551) | (3,494) | (3,389) | 2,736 | 145,304 |
Private Markets | 18,715 | 601 | (206) | (86) | 309 | (131) | 18,893 |
Total | 164,672 | 1,257 | (757) | (3,580) | (3,080) | 2,605 | 164,197 |
By Distribution Channel | New | Lost | Net Contributions | Net Organic | Market and Other4 | ||
Institutional | 89,279 | 580 | (152) | (1,542) | (1,114) | 1,692 | 89,857 |
Financial Intermediaries | 61,146 | 343 | (270) | (1,735) | (1,662) | 792 | 60,276 |
Private Wealth | 14,247 | 334 | (335) | (303) | (304) | 121 | 14,064 |
Total | 164,672 | 1,257 | (757) | (3,580) | (3,080) | 2,605 | 164,197 |
By Platform |
| New | Lost | Net Contributions | Net Organic | Market and Other4 | |
Public Markets, excluding AUM | 91,046 | 2,074 | (1,898) | (892) | (716) | 4,878 | 95,208 |
Public Markets AUM sub-advised | 49,219 | 30 | (2,037) | (2,437) | (4,444) | 5,321 | 50,096 |
Public Markets - Total | 140,265 | 2,104 | (3,935) | (3,329) | (5,160) | 10,199 | 145,304 |
Private Markets | 18,241 | 1,177 | (384) | (228) | 565 | 87 | 18,893 |
Total | 158,506 | 3,281 | (4,319) | (3,557) | (4,595) | 10,286 | 164,197 |
By Distribution Channel |
| New | Lost | Net Contributions | Net Organic | Market and Other4 | |
Institutional | 84,330 | 2,121 | (1,593) | (700) | (172) | 5,699 | 89,857 |
Financial Intermediaries | 60,275 | 555 | (2,104) | (2,340) | (3,889) | 3,890 | 60,276 |
Private Wealth | 13,901 | 605 | (622) | (517) | (534) | 697 | 14,064 |
Total | 158,506 | 3,281 | (4,319) | (3,557) | (4,595) | 10,286 | 164,197 |
- AUM of
$164 .2 billion decreased by$0 .5 billion or 0.3% compared toMarch 31, 2023 due to negative net organic growth in Public Markets AUM, partly offset by a favourable market impact primarily from equities and positive net organic growth in Private Markets AUM. - AUM increased by
$5 .7 billion or 3.6% compared toDecember 31, 2022 , due to a favourable market impact and new mandates, partly offset by outflows principally related to AUM sub-advised byPineStone Asset Management Inc. ("PineStone").
Second Quarter Financial Highlights
The Company's financial highlights reflect the following major items for the second quarter of 2023:
- Revenue increased by
$2.7 million , or 1.7% compared to Q1 2023. The increase was primarily due to higher base management fees as a result of higher average AUM in the quarter and higher commitment and transaction fees, partly offset by lower performance fees in Private Markets. Revenue decreased by$4 .0 million, or 2.4% compared to Q2 2022. The decrease was primarily due to lower performance fees crystallized inEurope andCanada and lower share of earnings in joint ventures and associates, due to timing of completion for certain projects. - Adjusted EBITDA increased by
$6.7 million or 17.3% compared to Q1 2023, principally due to higher revenue and lower employee compensation costs. Adjusted EBITDA was marginally lower compared to Q2 2022 due to the decrease in revenues, but offset by a reduction in expenses, as reflected by an adjusted EBITDA margin of 28.4% in the quarter. - Adjusted net earnings increased by
$5.2 million , or 22.1% compared to Q1 2023, primarily due to higher revenues, lower SG&A, excluding share-based compensation, and favourable foreign exchange revaluation, partly offset by higher income tax expense. - Adjusted net earnings decreased by
$2.9 million , or 9.2% compared to Q2 2022, primarily due to lower revenues, higher interest on long-term debt and debentures, and higher income tax expense, partly offset by lower SG&A, excluding share-based compensation. - Net earnings attributable to the Company's shareholders increased by
$13.0 million compared to Q1 2023, primarily due to a lower provision related to certain claims, lower restructuring, acquisition related and other costs, favourable foreign exchange revaluation, higher revenues, and lower SG&A, partly offset by higher income tax expense. - Net earnings attributable to the Company's shareholders decreased by
$0.3 million compared to Q2 2022. - LTM free cash flow decreased by
$64 .6 million compared to Q2 2022. The decrease was mainly due to lower cash generated by operating activities, higher interest paid on long-term debt and debentures, lower distributions received from joint ventures and associates, and higher dividends and other distributions to non-controlling interest.
Year-to-Date Financial Highlights
The Company's financial highlights reflect the following major items for the six-month period ended
- Revenue decreased by
$19.3 million or 5.7%, primarily due to lower base management fees in Public Markets from lower average AUM, lower share of earnings in joint ventures and associates, and lower performance fees primarily in Public Markets, partly offset by higher base management fees in Private Markets. - Adjusted EBITDA decreased by
$9.5 million , or 10.1%, primarily due to lower revenues, partly offset by net lower employee compensation costs and sub-advisory fees. - Adjusted net earnings decreased by
$12.5 million , or 19.3%, primarily due to lower revenues and higher interest on long-term debt and debentures, partly offset by lower SG&A. - Net earnings attributable to the Company's shareholders decreased by
$6.2 million . Items which impacted the six-month period endedJune 30, 2023 compared to the same period last year included: - A lower contribution from adjusted EBITDA of
$9.5 million ; - A provision of
$6.2 million related to certain claims recorded in the current year; and - A
$6.3 million increase in interest on long-term debt and debentures, due to rising interest rates;
These items were partly offset by lower accretion and change in the fair value of purchase price obligations and promissory note.
Second Quarter Business Highlights
Issuance of 8.25% Senior Subordinated Unsecured Hybrid Debentures
On
Redemption of 5.6% Hybrid Debentures Announced
On
Leadership Announcements
As part of the Company's global expansion strategy, the Company appointed
Subsequent to
Normal Course Issuer Bid ("NCIB")
The Company announces that the
Under the NCIB that will expire
The Board of Directors of the Company believes that the repurchase of Class A Shares, which the Company may carry out from time to time, represents a responsible investment and the NCIB will provide
Purchases under the NCIB will be made on the open market through the facilities of the TSX and through Canadian alternative trading systems, as well as outside the facilities of the TSX pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities. The price that the Company will pay for the Class A Shares will be the market price of such shares at the time of the acquisition as per the requirements of the market where the trade is made and applicable securities laws, except for purchases effected outside the facilities of the TSX pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities which will be at a discount to the prevailing market price.
The average daily trading volume (the "ADTV") of the Class A Shares over the last six complete calendar months was 241,288 Class A Shares. Accordingly, under TSX rules and policies,
Dividend Declared
On
Additional details relating to the company's operating results can be found on our Investor Relations web page under Financial Documents - Quarterly Results - Management's Discussion and Analysis.
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.
FOR THE THREE MONTHS ENDED | FOR THE SIX-MONTH | ||||
2023 | 2023 | 2022 | 2023 | 2022 | |
Net earnings | 11,921 | (748) | 11,753 | 11,173 | 17,206 |
Income tax expense | 5,140 | 147 | 672 | 5,287 | 2,276 |
Amortization and depreciation | 13,435 | 13,713 | 13,512 | 27,148 | 28,869 |
Interest on long-term debt and | 11,215 | 10,593 | 7,886 | 21,808 | 15,465 |
Interest on lease liabilities, foreign | (2,370) | 790 | 2,646 | (1,580) | 925 |
EBITDA | 39,341 | 24,495 | 36,469 | 63,836 | 64,741 |
Restructuring, acquisition related | 3,448 | 8,010 | 5,328 | 11,458 | 9,161 |
Accretion and change in fair value | (2,024) | (481) | 3,648 | (2,505) | 3,609 |
Share-based compensation | 3,951 | 2,507 | 1,811 | 6,458 | 16,420 |
Loss (gain) on investments, net | 157 | (1,287) | 443 | (1,130) | 1,504 |
Other expenses (income) | 595 | 5,579 | (1,262) | 6,174 | (1,670) |
Adjusted EBITDA | 45,468 | 38,823 | 46,437 | 84,291 | 93,765 |
Per share basic | 0.44 | 0.38 | 0.45 | 0.82 | 0.92 |
Per share diluted | 0.37 | 0.38 | 0.44 | 0.80 | 0.91 |
Weighted average shares | 103,720 | 102,750 | 103,170 | 102,903 | 102,251 |
Weighted average shares | 122,875 | 102,750 | 104,493 | 105,806 | 103,586 |
Reconciliation to Adjusted Net Earnings (in $ thousands)
FOR THE THREE MONTHS ENDED | FOR THE SIX-MONTH | ||||
2023 | 2023 | 2022 | 2023 | 2022 | |
Net earnings attributable to the | 10,484 | (2,517) | 10,759 | 7,967 | 14,178 |
Amortization and depreciation | 13,435 | 13,713 | 13,512 | 27,148 | 28,869 |
Restructuring, acquisition related and | 3,448 | 8,010 | 5,328 | 11,458 | 9,161 |
Accretion and change in fair value of | (1,712) | (228) | 4,335 | (1,940) | 4,910 |
Share-based compensation | 3,951 | 2,507 | 1,811 | 6,458 | 16,420 |
Other expenses (income) | 595 | 5,579 | (1,262) | 6,174 | (1,670) |
Tax effect of above-mentioned items | (1,493) | (3,520) | (2,928) | (5,013) | (7,061) |
Adjusted net earnings attributable | 28,708 | 23,544 | 31,555 | 52,252 | 64,807 |
Per share – basic | |||||
Net earnings | 0.10 | (0.02) | 0.10 | 0.08 | 0.14 |
Adjusted net earnings | 0.28 | 0.23 | 0.31 | 0.51 | 0.63 |
Per share – diluted | |||||
Net earnings | 0.09 | (0.02) | 0.10 | 0.08 | 0.14 |
Adjusted net earnings | 0.24 | 0.23 | 0.30 | 0.49 | 0.63 |
Weighted average shares | 103,720 | 102,750 | 103,170 | 102,903 | 102,251 |
Weighted average shares | 122,875 | 102,750 | 104,493 | 105,806 | 103,586 |
Reconciliation to LTM Free Cash Flow (in $ thousands)
FOR THE THREE MONTHS ENDED | ||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
2023 | 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | |
Net cash generated by (used in) operating | 14,123 | (13,463) | 66,722 | 25,686 | 46,853 | (25,951) | 97,226 | 36,960 |
Settlement of purchase price obligations and | (1,500) | — | — | (3,476) | (23,901) | — | — | — |
Proceeds on promissory note | 1,460 | 1,536 | 1,497 | 1,455 | 1,375 | 1,334 | 1,319 | 1,258 |
Distributions received from joint ventures and | 502 | 4,252 | 2,513 | 3,621 | 4,338 | 6,330 | 2,256 | 1,788 |
Dividends and other distributions to NCI | (5,895) | — | 10 | — | (1,753) | (1,425) | (19) | (43) |
Lease payments, net of lease inducements | (4,925) | (4,510) | (4,607) | (4,396) | (4,221) | (4,306) | (4,822) | (3,829) |
Interest paid on long-term debt and | (12,019) | (10,379) | (9,713) | (8,191) | (8,299) | (7,427) | (6,636) | (7,460) |
Other restructuring costs | 452 | 1,180 | 1,056 | 470 | 160 | 418 | 883 | 3,112 |
Acquisition related and other costs | 341 | 716 | 527 | 153 | 680 | 1,412 | 1,326 | 892 |
Free Cash Flow | (7,461) | (20,668) | 58,005 | 15,322 | 15,232 | (29,615) | 91,533 | 32,678 |
LTM Free Cash Flow | 45,198 | 67,891 | 58,944 | 92,472 | 109,828 | 145,257 | 135,012 | 131,426 |
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.
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 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. The uncertainty created by the COVID-19 pandemic has heightened such risk given the increased challenge in making predictions, forecasts, projections, expectations, or conclusions. 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 important factors is not exhaustive. When relying on forward-looking statements in this document and any other disclosure made by Fiera Capital, investors and others should carefully consider the preceding factors, other uncertainties and potential events.
Headquartered in
Each affiliated entity (each an "Affiliate") of
In the
Additional information about
SOURCE
© Canada Newswire, source