Canada NewsWire
MONTREAL, Nov. 13, 2020
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Nov. 13, 2020 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company" or the "Firm"), a leading independent asset management firm, today announced its financial results for the third quarter ended September 30, 2020. Financial references are in Canadian dollars unless otherwise indicated.
NON-IFRS MEASURES
"We continued to execute on our strategic priorities during the third quarter, with the goal of making Fiera Capital one of the world's top-tier asset managers. For this reason, maintaining focus on investment excellence and acting as a trusted investment manager, providing tailored solutions that cater to specific investment outcomes, is critical, particularly during these uncertain times," said Jean–Guy Desjardins, Chairman of the Board and Chief Executive Officer. "This commitment goes hand in hand with delivering profitable growth to our shareholders."
"We are very pleased with the progress made in implementing the Firm's new global operating model over the course of the third quarter, including making great strides in advancing our now globally integrated client interaction model, where our continued investments in talent and technology will be key. Moreover, our financial results and overall investment performance continued to strengthen as global markets recovered," said Jean-Philippe Lemay, Global President and Chief Operating Officer. "We reported Adjusted EBITDA of $53.4 million, representing a 3% increase compared to the second quarter of 2020 and a 15% year-over-year increase, with a corresponding margin of 31.3%."
"We paid $21.8 million to shareholders during the third quarter in the form of dividends and purchased $0.8 million of shares through our recently announced share repurchase program, another means by which we can return value to shareholders," said Lucas Pontillo, Executive Vice President and Global Chief Financial Officer. "Operating and financial results have remained strong during the ongoing pandemic, demonstrating the resilience of the business. As such, I am pleased to announce that the board has approved a dividend of 21 cents per share, payable on December 21."
Assets Under Management (in $ millions, unless otherwise indicated) | |||||||
AUM as at | Quarter-over-Quarter | Year-over-Year Change | |||||
Markets | Sept. 30, | June 30, | Sept. 30, | $ | % | $ | % |
Institutional | 103,807 | 98,258 | 92,826 | 5,549 | 5.6% | 10,981 | 11.8% |
Private Wealth | 34,932 | 35,948 | 33,446 | (1,016) | (2.8%) | 1,486 | 4.4% |
Retail | 38,954 | 36,781 | 38,392 | 2,173 | 5.9% | 562 | 1.5% |
Total | 177,693 | 170,987 | 164,664 | 6,706 | 3.9% | 13,029 | 7.9% |
June 30, | New | Lost | Net | Net | Market | Foreign | Sept. 30, | |
Institutional | 98,258 | 1,411 | (561) | 409 | 1,259 | 4,863 | (573) | 103,807 |
Private Wealth | 35,948 | 402 | (353) | (1,867) | (1,818) | 1,337 | (535) | 34,932 |
Retail | 36,781 | 102 | (656) | 450 | (104) | 2,456 | (179) | 38,954 |
AUM - end of period | 170,987 | 1,915 | (1,570) | (1,008) | (663) | 8,656 | (1,287) | 177,693 |
* Net Organic Growth represents the sum of New, Lost and Net Contributions. |
AUM at September 30, 2020 was $177.7 billion compared to:
Key Financial Highlights (in $ thousands except for per share data) | |||||
THREE-MONTH PERIODS ENDED | NINE-MONTH PERIODS ENDED | ||||
Sept. 30, 2020 | Jun. 30, 2020 | Sept. 30, 2019 | Sept. 30, 2020 | Sept. 30, 2019 | |
AUM (in $ billions) | 177.7 | 171.0 | 164.7 | 177.7 | 164.7 |
Average AUM (in $ billions) | 177.0 | 169.7 | 161.2 | 171.0 | 150.7 |
Revenues | |||||
Base management fees | 159,670 | 155,902 | 150,316 | 470,396 | 414,952 |
Performance fees | 940 | 1,991 | 1,564 | 6,182 | 4,725 |
Share of earnings in joint ventures and associates | 2,145 | 2,216 | - | 4,112 | - |
Other revenues | 7,982 | 6,756 | 8,076 | 18,569 | 32,968 |
Total revenues | 170,737 | 166,865 | 159,956 | 499,259 | 452,645 |
Expenses | |||||
SG&A(*) and external managers expenses | 122,568 | 122,471 | 118,754 | 363,367 | 338,804 |
All other net expenses | 43,141 | 58,708 | 45,795 | 133,156 | 129,801 |
165,709 | 181,179 | 164,549 | 496,523 | 468,605 | |
Net earnings (loss) | 5,028 | (14,314) | (4,593) | 2,736 | (15,960) |
Attributable to | |||||
The Company's shareholders | 4,726 | (14,703) | (4,740) | (2,396) | (16,806) |
Non-controlling interest | 302 | 389 | 147 | 5,132 | 846 |
Net earnings (loss) | 5,028 | (14,314) | (4,593) | 2,736 | (15,960) |
Earnings | |||||
Adjusted EBITDA 1 | 53,424 | 51,893 | 46,578 | 148,768 | 131,199 |
Net earnings (loss) | 5,028 | (14,314) | (4,593) | 2,736 | (15,960) |
Adjusted net earnings 1,2 | 37,588 | 38,704 | 32,466 | 96,863 | 89,934 |
Basic per share | |||||
Adjusted EBITDA 1 | 0.51 | 0.50 | 0.46 | 1.43 | 1.32 |
Net earnings (loss) | 0.05 | (0.14) | (0.05) | (0.02) | (0.17) |
Adjusted net earnings 1,2 | 0.36 | 0.38 | 0.32 | 0.93 | 0.91 |
Weighted average shares outstanding (in thousands) | 104,870.75 | 103,004.42 | 100,706.64 | 103,926.19 | 99,038.80 |
Diluted per share | |||||
Adjusted EBITDA 1 | 0.49 | 0.50 | 0.46 | 1.43 | 1.32 |
Net earnings (loss) (**) | 0.04 | (0.14) | (0.05) | (0.02) | (0.17) |
Adjusted net earnings 1,2 (**) | 0.35 | 0.38 | 0.32 | 0.93 | 0.91 |
Weighted average shares outstanding (in thousands) | 108,917.81 | 103,004.42 | 100,706.64 | 103,926.19 | 99,038.80 |
(*) SG&A: Selling, general and administrative expenses (**) The non-IFRS measures basic and diluted Adjusted EBITDA and Adjusted net earnings per share are calculated using the same weighted average number of shares outstanding as the basic and diluted net earnings (loss) per share figures, respectively, calculated in accordance with IFRS, regardless of net earnings or net loss. |
Revenues for the three-month period ended September 30, 2020 were $170.7 million compared to:
Selling General & Administrative ("SG&A") and external managers expenses was $122.6 million for the three-month period ended September 30, 2020 compared to:
The Company redeployed approximately $3.0 million of savings generated from the new global management structure announced in the second quarter of 2020 to certain key functions in order to help accelerate future growth.
Net earnings attributable to the Company's shareholders were $4.7 million, or $0.05 per share basic and $0.04 per share diluted, for the three-month period ended September 30, 2020 compared to:
Adjusted EBITDA for the third quarter of 2020 was $53.4 million, or $0.51 per share basic and $0.49 per share diluted, for the three-month period ended September 30, 2020 compared to:
Adjusted net earnings for the third quarter of 2020 were $37.6 million or $0.36 per share basic and $0.35 per share diluted, compared to:
Additional details relating to the company's operating results can be found on our Investor Relations web page under Quarterly Reports - Management Discussion and Analysis.
Subsequent Event
I. Dividends Declared
On November 12, 2020, the Board declared a quarterly dividend of $0.21 per Class A Share and Class B Special Voting Share of the Corporation, payable on December 21, 2020 to shareholders of record at the close of business on November 25, 2020. The dividend is an eligible dividend for income tax purposes.
Enhanced AUM Categories
Pursuant to Fiera Capital's new global operating model announced in June 2020, the Company will be introducing new AUM categories, which will be effective January 1, 2021. The Company will highlight these forthcoming changes during its Q3 2020 earnings call.
Conference Call
Live
Fiera Capital will hold a conference call at 10:30 a.m. (EDT) on Friday, November 13, 2020, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1-866-865-3087 (toll-free) and 1-647-427-7450 from outside North America (access code: 5696229).
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 November 20, 2020 by dialing 1-855-859-2056 (toll free), access code 5696229.
The webcast will remain available for three months following the call and can be accessed in the Investor Relations section of the website under Events and Presentations.
Footnotes
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.
With respect to Fiera Capital's management's expectations regarding contribution to EBITDA starting in financial year 2021, financial performance is based on information available to management and certain assumptions, including realization of estimated expense savings relating to redundancies, estimated amount of investment required to develop Fiera Capital's integrated global distribution function and assumptions regarding the organic growth in assets under management. Actual results could differ depending on a number of factors, including the ability to hire key personnel at anticipated compensation terms and conditions and general market conditions.
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 global asset management firm with approximately C$177.7 billion in assets under management as of September 30, 2020. The Company provides institutional, retail and private wealth clients with access to full-service integrated money management solutions across traditional and alternative asset classes. Fiera Capital's depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com
Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).
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) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult this webpage.
Additional information about Fiera Capital Corporation, including the Company's annual information form, is available on SEDAR at www.sedar.com.
SOURCE Fiera Capital Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2020/13/c4440.html