(in $ thousands except where otherwise indicated) | Q1 | Q4 | Q1 |
2024 | 2023 | 2023 | |
End of period AUM (in $ billions) | 165.2 | 161.7 | 164.7 |
Average AUM (in $ billions) | 164.8 | 158.4 | 163.9 |
IFRS Financial Measures | |||
Total revenues | 168,115 | 210,972 | 157,091 |
Base management fees | 151,537 | 147,371 | 147,428 |
Net earnings (loss) 1 | 7,645 | 39,418 | (2,517) |
Non-IFRS Financial Measures | |||
Adjusted EBITDA 2 | 45,395 | 77,621 | 38,823 |
Adjusted EBITDA margin 2 | 27.0 % | 36.8 % | 24.7 % |
Adjusted net earnings 1,2 | 26,089 | 50,163 | 23,544 |
LTM Free Cash Flow 2 | 71,847 | 89,212 | 67,891 |
"Following a strong close to 2023, we are pleased to start 2024 with overall AUM growth of
"Equity markets continued their strong performance in the first quarter of 2024 which, combined with growth in base management fees in Private Markets, resulted in a good year-over-year increase in total revenues. This, along with our continued prudent approach to cost management, enabled us to generate an adjusted EBITDA margin of 27%, a marked improvement from 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 sub-advised by PineStone | 97,984 | 718 | (182) | (1,053) | (517) | 1,532 | 98,999 |
Public Markets AUM sub-advised by PineStone | 45,231 | 84 | (2,741) | (147) | (2,804) | 4,882 | 47,309 |
Public Markets - Total | 143,215 | 802 | (2,923) | (1,200) | (3,321) | 6,414 | 146,308 |
Private Markets | 18,478 | 602 | (32) | (52) | 518 | (139) | 18,857 |
Total | 161,693 | 1,404 | (2,955) | (1,252) | (2,803) | 6,275 | 165,165 |
By Distribution Channel |
| New | Lost | Net Contributions | Net Organic | Market and Other4 | |
Institutional | 88,605 | 1,025 | (2,731) | (1,077) | (2,783) | 2,176 | 87,998 |
Financial Intermediaries | 59,084 | 253 | (72) | (51) | 130 | 3,646 | 62,860 |
Private Wealth | 14,004 | 126 | (152) | (124) | (150) | 453 | 14,307 |
Total | 161,693 | 1,404 | (2,955) | (1,252) | (2,803) | 6,275 | 165,165 |
- AUM increased by
$3.5 billion or 2.2% compared toDecember 31, 2023 reflecting a favourable market impact of$6.4 billion , primarily from equity mandates, partly offset by negative net organic growth of$2.8 billion . Negative net organic growth included$3.3 billion in Public Markets, partly offset by positive net organic growth in Private Markets of$0.5 billion , primarily from new mandates.- Negative net organic growth included
$2.8 billion of outflows connected to AUM sub-advised by PineStone, of which, to our knowledge,$2.7 billion related to AUM that transferred directly to PineStone. - In fiscal 2023, a large Financial Intermediary client withdrew
$4.9 billion of AUM, of which approximately$3.5 billion was transferred to PineStone. There were no transfers to PineStone related to this client in the current quarter. As previously announced, they are expected to redirect approximately$3 billion of AUM by the end of the second quarter, as part of their ongoing transfer of assets to PineStone. Excluding this, management expects the AUM reduction from lost mandates transferring directly to PineStone to be in the range of$3 to$4 billion this year.
- Negative net organic growth included
First Quarter Financial Highlights
- Revenue increased by
$11.0 million , or 7.0% compared to Q1 2023. The increase was primarily due to higher share of earnings in joint ventures and associates, higher base management fees in Private Markets, and higher other revenues. These increases were partly offset by lower commitment and transaction fees and performance fees in Private Markets. - Adjusted EBITDA increased by
$6.6 million , or 17.0% compared to Q1 2023, primarily due to higher share of earnings in joint ventures and associates, base management fees, and other revenues, partly offset by higher variable compensation. - Adjusted net earnings increased by
$2.6 million , or 11.1% compared to Q1 2023, primarily due to higher revenues, partly offset by higher SG&A, excluding share-based compensation, higher interest on lease liabilities, foreign exchange revaluation and other financial charges, and higher interest on long-term debt and debentures. - Net earnings attributable to the Company's shareholders increased by
$10.1 million compared to Q1 2023. The increase was primarily due to higher revenues, a provision for certain claims recorded in the same period last year, and lower restructuring, acquisition related and other costs, partly offset by higher SG&A and higher interest on lease liabilities, foreign exchange revaluation and other financial charges. - LTM Free Cash Flow increased by
$3.9 million or 5.7% compared to Q1 2023. The increase was mainly due to the settlement of purchase price obligations and puttable financial instrument liability in fiscal 2022, partly offset by lower distributions from joint ventures and associates, higher interest paid on long-term debt and debentures, and higher dividends paid to non-controlling interests.- LTM Free Cash Flow decreased by
$17.4 million or 19.5% compared to the previous quarter. The decrease was primarily due to changes in non-cash working capital, primarily from higher settlements of accounts payable, mainly related to bonuses and income taxes paid during the first quarter, delays in collecting performance fees from the prior quarter, and the timing of prepaids.
- LTM Free Cash Flow decreased by
Subsequent to
Dividend Declared
On
Fiera Holdings Receives Sale Notice from Desjardins
On
The sale of the Class A Shares that the
Senior management of the Company is currently considering making an offer, together with a financial partner, to acquire the
Additional details relating to the company's operating results can be found in the Company Management's Discussion and Analysis for the three months 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. |
For a description of the Company's non-IFRS Measures, please refer to page 41 of the Company's Management's Discussion and Analysis for the three months ended |
Reconciliation to EBITDA and Adjusted EBITDA (in $ thousands)
FOR THE THREE MONTHS ENDED | |||
2024 | 2023 | 2023 | |
Net earnings (loss) | 9,766 | 42,864 | (748) |
Income tax expense | 1,000 | 11,985 | 147 |
Amortization and depreciation | 12,842 | 13,406 | 13,713 |
Interest on long-term debt and debentures | 11,703 | 11,710 | 10,593 |
Interest on lease liabilities, foreign exchange revaluation and other financial charges | 2,922 | (1,220) | 790 |
EBITDA | 38,233 | 78,745 | 24,495 |
Restructuring, acquisition related and other costs | 4,493 | 3,100 | 8,010 |
Accretion and change in fair value of purchase price obligations and other | (1,119) | 106 | (481) |
Share-based compensation | 3,773 | 2,474 | 2,507 |
(Gain) loss on investments, net | 13 | (124) | (1,287) |
Other expenses (income) | 2 | (6,680) | 5,579 |
Adjusted EBITDA | 45,395 | 77,621 | 38,823 |
Per share basic | 0.43 | 0.73 | 0.38 |
Per share diluted | 0.42 | 0.56 | 0.38 |
Weighted average shares outstanding - basic (thousands) | 106,458 | 106,116 | 102,750 |
Weighted average shares outstanding - diluted (thousands) | 108,698 | 139,543 | 102,750 |
Reconciliation to Adjusted Net Earnings (in $ thousands)
FOR THE THREE MONTHS ENDED | |||
2024 | 2023 | 2023 | |
Net earnings (loss) attributable to the Company's shareholders | 7,645 | 39,418 | (2,517) |
Amortization and depreciation | 12,842 | 13,406 | 13,713 |
Restructuring, acquisition related and other costs | 4,493 | 3,100 | 8,010 |
Accretion and change in fair value of purchase price obligations and other, and effective interest on debentures | (913) | 364 | (228) |
Share-based compensation | 3,773 | 2,474 | 2,507 |
Other expenses (income) | 2 | (6,680) | 5,579 |
Tax effect of above-mentioned items | (1,753) | (1,919) | (3,520) |
Adjusted net earnings attributable to the Company's shareholders | 26,089 | 50,163 | 23,544 |
Per share – basic | |||
Net earnings (loss) | 0.07 | 0.37 | (0.02) |
Adjusted net earnings | 0.25 | 0.47 | 0.23 |
Per share – diluted | |||
Net earnings (loss) | 0.07 | 0.30 | (0.02) |
Adjusted net earnings | 0.24 | 0.37 | 0.23 |
Weighted average shares outstanding - basic (thousands) | 106,458 | 106,116 | 102,750 |
Weighted average shares outstanding - diluted (thousands) | 108,698 | 139,543 | 102,750 |
Reconciliation to LTM Free Cash Flow (in $ thousands)
FOR THE THREE MONTHS ENDED | ||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
2024 | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
Cash flow from operations before the impact of working capital | 34,641 | 70,265 | 46,180 | 39,828 | 30,109 | 41,364 | 37,148 | 38,444 |
Changes in non-cash operating working capital items | (60,389) | (12,666) | 33,528 | (25,705) | (43,572) | 25,358 | (11,462) | 8,409 |
Net cash generated by (used in) operating activities | (25,748) | 57,599 | 79,708 | 14,123 | (13,463) | 66,722 | 25,686 | 46,853 |
Settlement of purchase price obligations and puttable financial instrument liability | — | — | — | (1,500) | — | — | (3,476) | (23,901) |
Proceeds on promissory note | 1,501 | 1,500 | 1,510 | 1,460 | 1,536 | 1,497 | 1,455 | 1,375 |
Distributions received from joint ventures and associates, net of investments | 3,326 | 1,723 | 1,617 | 502 | 4,252 | 2,513 | 3,621 | 4,338 |
Dividends and other distributions to Non-Controlling Interest | — | (3,167) | — | (5,895) | — | 10 | — | (1,753) |
Lease payments | (4,718) | (4,690) | (3,837) | (4,925) | (4,510) | (4,607) | (4,396) | (4,221) |
Interest paid on long-term debt and debentures | (13,995) | (6,299) | (12,174) | (12,019) | (10,379) | (9,713) | (8,191) | (8,299) |
Other restructuring costs | 1,569 | 2,075 | 1,226 | 452 | 1,180 | 1,056 | 470 | 160 |
Acquisition related and other costs | 32 | 420 | 130 | 341 | 716 | 527 | 153 | 680 |
Free Cash Flow | (38,033) | 49,161 | 68,180 | (7,461) | (20,668) | 58,005 | 15,322 | 15,232 |
LTM Free Cash Flow | 71,847 | 89,212 | 98,056 | 45,198 | 67,891 | 58,944 | 92,472 | 109,828 |
3) | Net Organic Growth represents the sum of new mandates, lost mandates 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 comments with respect to the possibility that senior management make an offer to purchase the
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
About
Headquartered in
Each affiliated entity (each an "Affiliate") of
Additional information about
SOURCE
© Canada Newswire, source