Canada NewsWire
MONTREAL, May 9, 2019
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTREAL, May 9, 2019 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company"), a leading independent asset management firm, today announced its financial results for the first quarter ended March 31, 2019.
"As we announced earlier this morning, we are excited to be partnering with Natixis Investment Managers and to be able to offer their highly rated active global investment strategies to our Canadian client base. Natixis is a global player with C$1.2 trillion in AUM and a presence in 38 countries, and the agreement now establishes Fiera Capital as their preferred Canadian distribution platform. We are confident that his strategic partnership will accelerate our growth and global leadership position as we continue to execute on our 2022 strategic plan to become one of the top 100 asset managers in the world," said Jean-Guy Desjardins, Chairman of the Board and Chief Executive Officer of Fiera Capital.
"First quarter revenues increased almost 20% year over year, reflecting solid organic growth and contribution from our strategic acquisitions, as well as the positive impact of the market recovery since the start of the year. Committed to generating alpha for our clients, our investment teams delivered excellent above-benchmark performance through our growing suite of differentiated strategies."
Assets Under Management (in $ millions) | |||||||
AUM as at | Y-o-Y Change | Q-o-Q Change | |||||
Markets | March 31, 2019 | December 31, 2018 | March 31, 2018 | (in $M) | (%) | (in $M) | (%) |
Institutional | 76,489 | 71,958 | 68,565 | 7,924 | 11.6% | 4,531 | 6.3% |
Private Wealth | 32,696 | 31,317 | 27,516 | 5,180 | 18.8% | 1379 | 4.4% |
Retail | 35,676 | 33,400 | 35,279 | 397 | 1.1% | 2,276 | 6.8% |
Total | 144,861 | 136,675 | 131,360 | 13,501 | 10.3% | 8,186 | 6.0% |
First Quarter Business Highlights
Revenues
Q1 2019 vs Q1 2018
Revenues for the first quarter of 2019, were $142.8 million, an increase of $22.8 million, or 19%, compared to $120.0 million for the same period last year. The year-over-year increase is mainly the result of:
Q1 2019 vs Q4 2018
Revenues for the first quarter ended March 31, 2019 decreased by $14.2 million, or 9%, compared to $157.0 million in the previous quarter, mainly as a result of:
The lower performance fees were partly offset by higher base management fees due to strong markets and a gain on a foreign currency hedge recorded in the first quarter of 2019, compared to a loss recorded in the quarter ended December 31, 2018.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA" (1))
Q1 2019 vs Q1 2018
Adjusted EBITDA for the first quarter of 2019 was $38.8 million ($0.40 per share – basic and diluted), representing an increase of $10.0 million, or 35%, compared to $28.8 million ($0.32 per share – basic and diluted) for the comparable 2018 period. The increase was primarily driven by:
This was partly offset by an increase in operating expenses as the Company continues to focus on growing the business, both organically and via acquisitions, while investing in efficiency and process improvements.
Q1 2019 vs Q4 2018
Compared to the fourth quarter of 2018, Q1 quarter 2019 adjusted EBITDA decreased by $0.5 million, or 1%, mainly driven by:
The decrease was largely offset by:
Adjusted Net Earnings(1)
Q1 2019 vs Q1 2018
Adjusted net earnings for the first quarter of 2019 totalled $24.9 million ($0.26 per share – basic and diluted), up $3.2 million from $21.7 million ($0.24 per share – basic and diluted) in the first quarter of 2018, mainly as a result of:
Q1 2019 vs Q4 2018
Adjusted net earnings for the first quarter of 2019 totalled $24.9 million ($0.26 per share – basic and diluted), down $3.4 million from $28.3 million ($0.29 per share – basic and diluted) in the fourth quarter of 2018, mainly as a result of:
This was partially offset by:
Net Earnings (loss)
Q1 2019 vs Q1 2018
For the first quarter ended March 31, 2019, the Company reported a net loss attributable to the Company's shareholders of $6.6 million ($0.07 per share – basic and diluted), compared to a net loss of $2.2 million ($0.02 per share – basic and diluted), for the same quarter last year. The decrease is mainly attributable to an increase in amortization of intangible assets, higher interest expenses and higher expenses related to the accretion and change in fair value of the purchase price obligations (mainly related to the CNR and Clearwater transactions), partially offset by higher revenues due to volume and acquisitions.
Q1 2019 vs Q4 2018
The Company reported a net loss attributable to the Company's shareholders of $6.6 million ($0.07 per share – basic and diluted) during the first quarter of 2019, compared to a net loss of $1.7 million ($0.02 per share – basic and diluted) in the previous quarter. The decrease is mainly due to the income tax expense in the first quarter of 2019 compared to an income tax credit for the previous quarter, combined with the increase in amortization of intangible assets, partially offset by higher revenues due to volume and acquisitions.
FOR THE THREE-MONTH PERIODS ENDED | |||
MARCH 31, | DECEMBER 31, | MARCH 31, | |
Net earnings (loss) attributable to the Company's shareholders | (6,553) | (1,709) | (2,193) |
Depreciation of property and equipment | 1,084 | 1,179 | 947 |
Amortization of intangible assets | 12,415 | 12,468 | 10,022 |
Depreciation of right-of-use assets | 5,057 | - | - |
Share-based compensation(*) | 5,234 | 5,359 | 6,745 |
Restructuring, integration and other costs(*) | 3,128 | 3,399 | 928 |
Acquisition costs(*) | 1,707 | 2,966 | 3,018 |
Accretion and change in fair value of purchase price obligations and effective interest on convertible bonds(*) | 6,807 | 8,692 | 4,784 |
Revaluation of assets-held-for-sale(*) | (546) | 191 | - |
Less: Income taxes on above-mentioned items(*) | 3,460 | 4,294 | 2,590 |
Adjusted net earnings attributable to the Company's shareholders | 24,873 | 28,251 | 21,661 |
Per share – basic | |||
Net earnings (loss) | (0.07) | (0.02) | (0.02) |
Adjusted net earnings | 0.26 | 0.29 | 0.24 |
Per share – diluted | |||
Net earnings (loss) | (0.07) | (0.02) | (0.02) |
Adjusted net earnings | 0.26 | 0.29 | 0.24 |
Dividend
On May 8, 2019, the Board of Directors declared a dividend of $0.21 per Class A subordinate voting share and Class B special voting share of Fiera Capital. The dividend is payable on June 19, 2019 to shareholders of record at the close of business on May 22, 2019. The dividend is an eligible dividend for income tax purposes.
Subsequent Events
Annual General Meeting
Shareholders of Fiera Capital are welcome to attend the Company's annual general meeting to be held on Thursday, May 30, 2019 at 9:30 a.m. at the Centre Mont-Royal, located at 2200 Mansfield Street, Montreal, Quebec.
First Quarter 2019 Financial and Operating Results
The following table provides selected financial information for the three-month period ended March 31, 2019, compared to the quarter ended December 31, 2018 and to the quarter ended March 31, 2018.
Key Financial Highlights (in $ thousands except for per share data) | |||||
THREE-MONTH PERIODS | VARIANCE | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Quarter Over Quarter | Year Over | |
AUM (in $ millions) | 144,861 | 136,675 | 131,360 | 8,186 | 13,501 |
Revenues | |||||
Base management fees and other revenues | 141,178 | 139,156 | 118,511 | 2,022 | 22,667 |
Performance fees – Traditional assets | 1,557 | 8,309 | 1,573 | (6,752) | (16) |
Performance fees – Alternative assets | 50 | 9,498 | (103) | (9,448) | 153 |
Total revenues | 142,785 | 156,963 | 119,981 | (14,178) | 22,804 |
Expenses | |||||
SG&A(*) and external managers expenses | 109,202 | 123,000 | 97,887 | 13,798 | (11,315) |
All other net expenses | 40,167 | 35,536 | 24,187 | (4,631) | (15,980) |
149,369 | 158,536 | 122,074 | 9,167 | (27,295) | |
Net earnings (loss) | (6,584) | (1,573) | (2,093) | 5,011 | 4,491 |
Attributable to | |||||
The Company's shareholders | (6,553) | (1,709) | (2,193) | (4,844) | (4,360) |
Non-controlling interest | (31) | 136 | 100 | (167) | (131) |
Net earnings (loss) | (6,584) | (1,573) | (2,093) | (5,011) | (4,491) |
Earnings | |||||
Adjusted EBITDA | 38,817 | 39,322 | 28,839 | (505) | 9,978 |
Net earnings (loss) | (6,584) | (1,573) | (2,093) | (5,011) | (4,491) |
Adjusted net earnings | 24,873 | 28,251 | 21,344 | (3,378) | 3,529 |
Basic per share | |||||
Adjusted EBITDA | 0.40 | 0.41 | 0.32 | (0.01) | 0.08 |
Net earnings (loss) | (0.07) | (0.02) | (0.02) | (0.05) | (0.05) |
Adjusted net earnings | 0.26 | 0.29 | 0.24 | (0.03) | 0.02 |
Diluted per share | |||||
Adjusted EBITDA | 0.40 | 0.41 | 0.32 | (0.01) | 0.08 |
Net earnings (loss) | (0.07) | (0.02) | (0.02) | (0.05) | (0.05) |
Adjusted net earnings | 0.26 | 0.29 | 0.24 | (0.03) | 0.02 |
(*) SG&A: Selling, general and administrative expenses |
Conference Call
Fiera Capital will hold a conference call at 10:30 a.m. (EDT) on Thursday, May 9, 2019, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1-888-231-8191 (toll-free), from outside North America is 1-647-427-7450, conference ID: 9094176.
The conference call will also be accessible via webcast in the Investors Relations section of Fiera Capital's website (www.fieracapital.com), under Events.
A replay of the call will be available by telephone until May 16, 2019. The telephone number to access the replay of the call is 1-855-859-2056 (toll-free), access code 9094176. The replay will also be available in the Investors Relations section of the Website under Events, in the days following the event.
Non-IFRS Measures
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 are not standardized measures prescribed by International Financial Reporting Standards ("IFRS"). These non-IFRS measures do not have any standardized meaning and may not be comparable to similar measures presented by other companies. Certain comparative figures have been restated to conform with the current presentation. Please refer to the "Non-IFRS Measures" Section of the Company's MD&A for the definitions and the reconciliation to IFRS measures, available at www.fieracapital.com
Forward-Looking Statements
This document may contain certain forward-looking statements. These statements relate to future events or future performance, and reflect management's expectations or beliefs regarding future events, including business and economic conditions and Fiera Capital's growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend" or the negative of these terms, or other comparable terminology.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic conditions, the nature of the financial services industry, and the risks and uncertainties detailed from time to time in Fiera Capital's interim condensed and annual consolidated financial statements, and its latest Annual Report and Annual Information Form filed on www.sedar.com. These forward-looking statements are made as of the date of this document, and Fiera Capital assumes no obligation to update or revise them to reflect new events or circumstances.
About Fiera Capital Corporation
Fiera Capital is a leading independent asset management firm with approximately C$144.9 billion in assets under management as of March 31, 2019. The Company provides institutional, retail and private wealth clients with access to full-service integrated money management solutions across traditional and alternative asset classes. Clients and their portfolios derive benefit from Fiera Capital's depth of expertise, diversified offerings and outstanding service. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com
In the U.S., asset management services are provided by the Company's U.S. affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training.
Additional information about Fiera Capital Corporation, including the Company's annual information form, is available on SEDAR at www.sedar.com.
1 | 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 are not standardized measures prescribed by International Financial Reporting Standards ("IFRS"). These non-IFRS measures do not have any standardized meaning and may not be comparable to similar measures presented by other companies. Certain comparative figures have been restated to conform with the current presentation. Please refer to the "Non-IFRS Measures" Section of the Company's MD&A for the definitions and the reconciliation to IFRS measures, available at www.fieracapital.com |
2 | The Company adopted IFRS 16 Leases on January 1, 2019. The comparative information presented for 2018 has not been restated and is presented, as previously reported, under IAS 17 Leases and related interpretations. Compared to Q1 2018, the adoption of IFRS 16 had a favourable impact of approximately $2.6 million on Q1 2019 adjusted EBITDA and 1.8% on Q1 2019 adjusted EBITDA margin. Compared to Q4 2018, the adoption of IFRS 16 had a favourable impact of approximately $3.0 million on Q1 2019 adjusted EBITDA and 2.1% on Q1 2019 adjusted EBITDA margin. |
3 | Last twelve months |
4 | Calculated as a function of base management fees |
SOURCE Fiera Capital Corporation
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