Canada NewsWire
MONTREAL, Nov. 11, 2021
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
MONTREAL, Nov. 11, 2021 /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 third quarter ended September 30, 2021. Financial references are in Canadian dollars unless otherwise indicated.
(in $ thousands except where | Q3 | Q2 | Q3 | YTD* | YTD* | ||||||
2021 | 2021 | 2020 | 2021 | 2020 | |||||||
End of period AUM (in $ billions) | 180.8 | 179.5 | 179.2 | 180.8 | 179.2 | ||||||
IFRS Financial Measures | |||||||||||
Total revenues | 174,928 | 167,405 | 170,737 | 507,944 | 499,259 | ||||||
Base management fees | 158,175 | 151,759 | 159,670 | 466,402 | 470,396 | ||||||
Net earnings | 3,183 | 13,797 | 5,028 | 40,003 | 2,736 | ||||||
Non-IFRS Financial Measures | |||||||||||
Adjusted EBITDA 1 | 55,357 | 52,696 | 53,424 | 155,553 | 148,768 | ||||||
Adjusted EBITDA margin 1 | 31.6 | % | 31.5 | % | 31.3 | % | 30.6 | % | 29.8 | % | |
Adjusted net earnings 1,2 | 37,536 | 41,251 | 37,588 | 116,313 | 96,862 |
*For the nine-month period ended September 30. |
"The last 18 months have been characterized by multiple successes at Fiera Capital against the backdrop of an uncertain economic environment. We introduced and implemented a global operating model for strengthened strategic alignment. We continued to enhance our Public Markets investment platform, notably by onboarding the Fiera Atlas Global Companies team, adding investment capabilities to our global equity offering, and continued growing in Private Markets by deploying capital into high quality assets. Most recently, we announced an agreement to establish a sub-advisory partnership with StonePine, which is progressing, and we are targeting a closing towards the end of 2021," said Jean-Guy Desjardins, Chairman of the Board and Chief Executive Officer.
"Our investment teams' persistent dedication to investment excellence contributed to strong business performance across both our platforms during the quarter. In Public Markets, most of our strategies continue to rank 1st and 2nd quartile over the long term, and the majority beat their benchmarks during the third quarter. The Private Markets platform, which we are focused on growing, generated strong returns across all key strategies, reaching $15.0 billion in AUM on September 30, a $1.0 billion, or 7.1%, increase compared to June 30. Sustained interest for this competitive and diversified set of strategies resulted in $1.6 billion in client subscriptions received through the first nine months of the year, and with the hard work and commitment of our experienced teams, we deployed $1.5 billion into high quality private assets over the same period," said Jean-Philippe Lemay, Global President and Chief Operating Officer
"I am pleased to announce that, after holding the dividend constant through all of 2019 and all of 2020, the Board has approved a dividend increase of 0.5 cents per share, or 2.4%. As such, our next dividend, payable in December 2021, will be a dividend of 21.5 cents per share, up from 21 cents previously," said Lucas Pontillo, Executive Vice President and Global Chief Financial Officer. "What's more, following the renewal of our NCIB in August 2021, we purchased and cancelled close to 590 thousand Class A Shares during the third quarter for total consideration of $6.2 million, bringing total repurchases since the beginning of the year to $13.4 million. I am also pleased to report that our Funded Debt to EBITDA ratio, as calculated per our credit facility, is at its lowest level in the last 3 years at 2.3 times for the quarter, an indication of our prudent allocation of capital over that time."
Assets Under Management (in $ millions, unless otherwise indicated)
AUM as at | Quarter-over-Quarter | Year-over-Year | ||||||||||||
Distribution | Sept. 30, 2021 | June 30, 2021 | Sept. 30, 2020 | $ | % | $ | % | |||||||
Institutional | 93,487 | 92,332 | 85,477 | 1,155 | 1.3 | % | 8,010 | 9.4 | % | |||||
Financial | 73,026 | 72,724 | 68,431 | 302 | 0.4 | % | 4,595 | 6.7 | % | |||||
Private Wealth | 14,281 | 14,414 | 25,301 | (133) | (0.9) | % | (11,020) | (43.6) | % | |||||
Total3 | 180,794 | 179,470 | 179,209 | 1,324 | 0.7 | % | 1,585 | 0.9 | % | |||||
June 30, | New | Net | Lost | Net | Market | Foreign | Acquisitions/Dispositions | Sept. 30, | ||
Institutional | 92,332 | 1,480 | (1,859) | (274) | (653) | 1,294 | 514 | — | 93,487 | |
Financial | 72,724 | 234 | (6) | (638) | (410) | 852 | 698 | (838) | 73,026 | |
Private Wealth | 14,414 | 217 | (66) | (192) | (41) | (195) | 103 | — | 14,281 | |
AUM - end of | 179,470 | 1,931 | (1,931) | (1,104) | (1,104) | 1,951 | 1,315 | (838) | 180,794 |
* Net Organic Growth represents the sum of New, Net Contributions and Lost. |
1) Quarter-over-quarter AUM change reflects $0.8 billion of withdrawals in the Financial Intermediaries distribution channel during the third quarter of 2021 in connection with sale of the rights to manage the Fiera Capital Emerging Markets Fund.
2) Year-over-year AUM change reflects, in the Financial Intermediaries distribution channel, withdrawals of $2.0 billion during the first quarter of 2021 and $0.8 billion during the third quarter of 2021 in connection with the termination of the revenue-sharing arrangement with City National Rochdale ("CNR") with regards to the Fiera Capital Emerging Markets Fund, as well as the $0.9 billion inflow from the inclusion of AUM related to the Fiera Atlas Global Companies ("Fiera Atlas") team during the second quarter of 2021. In the Private Wealth distribution channel, year-over-year change reflects the $12.7 billion reduction in AUM related to the dispositions of Bel Air Investment Advisors ("Bel Air") and Wilkinson Global Asset Management ("WGAM").
3) AUM includes committed, undeployed capital of $1.8 billion as at September 30, 2021, $1.5 billion as at June 30, 2021, and $1.5 billion as at September 30, 2020.
AUM at September 30, 2021 was $180.8 billion compared to:
Note: Certain totals, subtotals and percentages may not reconcile due to rounding. |
Key Financial Highlights (in $ thousands except for per share data)
THREE-MONTH PERIODS ENDED | NINE-MONTH PERIODS ENDED | |||||||||
Sept. 30, 2021 | June 30, 2021 | Sept. 30, 2020 | Sept. 30, 2021 | Sept. 30, 2020 | ||||||
AUM (in $ billions) | 180.8 | 179.5 | 179.2 | 180.8 | 179.2 | |||||
Average AUM (in $ billions) | 183.2 | 175.9 | 178.3 | 179.1 | 172.4 | |||||
Revenues | ||||||||||
Base management fees | 158,175 | 151,759 | 159,670 | 466,402 | 470,396 | |||||
Performance fees | 2,978 | 5,373 | 940 | 9,783 | 6,182 | |||||
Share of earnings in joint ventures and associates | 2,743 | 425 | 2,145 | 3,730 | 4,112 | |||||
Other revenues | 11,032 | 9,848 | 7,982 | 28,029 | 18,569 | |||||
Total revenues | 174,928 | 167,405 | 170,737 | 507,944 | 499,259 | |||||
Expenses | ||||||||||
Selling, general and administrative expenses ("SG&A") | 132,017 | 119,888 | 122,568 | 373,305 | 363,367 | |||||
All other net expenses | 39,728 | 33,720 | 43,141 | 94,636 | 133,156 | |||||
171,745 | 153,608 | 165,709 | 467,941 | 496,523 | ||||||
Net earnings | 3,183 | 13,797 | 5,028 | 40,003 | 2,736 | |||||
Attributable to | ||||||||||
The Company's shareholders | 2,333 | 13,310 | 4,726 | 37,877 | (2,396) | |||||
Non-controlling interest | 850 | 487 | 302 | 2,126 | 5,132 | |||||
Net earnings | 3,183 | 13,797 | 5,028 | 40,003 | 2,736 | |||||
Earnings | ||||||||||
Adjusted EBITDA 1 | 55,357 | 52,696 | 53,424 | 155,553 | 148,768 | |||||
Net earnings | 3,183 | 13,797 | 5,028 | 40,003 | 2,736 | |||||
Adjusted net earnings 1,2 | 37,536 | 41,251 | 37,588 | 116,313 | 96,862 | |||||
Basic per share | ||||||||||
Adjusted EBITDA 1 | 0.53 | 0.50 | 0.51 | 1.50 | 1.43 | |||||
Net earnings | 0.02 | 0.13 | 0.05 | 0.36 | (0.02) | |||||
Adjusted net earnings 1,2 | 0.36 | 0.39 | 0.36 | 1.12 | 0.93 | |||||
Weighted average shares outstanding (in thousands) | 104,817 | 104,455 | 104,871 | 103,808 | 103,926 | |||||
Diluted per share | ||||||||||
Adjusted EBITDA 1 (*) | 0.51 | 0.44 | 0.49 | 1.44 | 1.43 | |||||
Net earnings | 0.02 | 0.12 | 0.04 | 0.35 | (0.02) | |||||
Adjusted net earnings 1,2 (*) | 0.34 | 0.36 | 0.35 | 1.08 | 0.93 | |||||
Weighted average shares outstanding (in thousands) | 108,957 | 118,631 | 108,918 | 107,974 | 103,926 |
(*) 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
Q3 2021 Total revenues were $174.9 million compared to:
SG&A
SG&A were $132.0 million for Q3 2021 compared to:
Net earnings attributable to the Company's shareholders
Net earnings attributable to the Company's shareholders were $2.3 million, or $0.02 per share (basic and diluted), for Q3 2021 compared to:
These decreases were partly offset by:
The decrease was partly offset by:
Net earnings attributable to the Company's shareholders were $0.5 million lower from the sale of the rights to manage the Fiera Capital Emerging Markets Fund. Excluding the impact of this disposition, net earnings attributable to the Company's shareholders for the three months ended September 30, 2021 would have been $2.3 million compared to $12.8 million for the three months ended June 30, 2021, a decrease of $10.5 million, or 82.0%.
Adjusted EBITDA
Adjusted EBITDA for Q3 2021 was $55.4 million, or $0.53 per share (basic) and $0.51 per share (diluted) compared to:
Adjusted net earnings
Adjusted net earnings for Q3 2021 were $37.5 million or $0.36 per share (basic) and $0.34 per share (diluted), compared to:
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
Fiera Capital will hold a conference call at 10:00 a.m. (ET) on Thursday, November 11, 2021, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1-888-390-0620 (toll-free) and 1-416-764-8651 from outside North America (access code: 16480557).
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 18, 2021 by dialing 1-888-390-0541 (toll free), access code 480557 followed by the number sign (#).
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 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 Fiera Capital's growth, results of operations, performance and business prospects and opportunities. Forward-looking statements also include comments with respect to the anticipated timing of closing of the transaction with StonePine. Forward-looking statements may include comments with respect to Fiera Capital's objectives, strategies to achieve those objectives, expected financial results, and the outlook for Fiera Capital's businesses and for the Canadian, American, European, Asian and other global economies. Such statements reflect management's current beliefs and are based on factors and assumptions it considers to be reasonable based on information currently available to management and may typically be identified by terminology such as "believe", "expect", "plan", "anticipate", "estimate", "may increase", "may fluctuate", "predict", "potential", "continue", "target", "intend" or the negative of these terms or other comparable terminology and similar expressions of future or conditional verbs, such as "will," "should," "would" and "could."
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 Fiera Capital's control, could cause actual events or results to differ materially from the predictions, forecasts, projections, expectations, or conclusions expressed in such forward-looking statements which include, but are not limited to, risks relating to failure to obtain client consents to the transaction with StonePine, failure to satisfy closing conditions in a timely manner for the StonePine transaction or at all, failure to meet the anticipated timing of closing of the StonePine transaction, failure to complete the StonePine transaction for any reason, failure to realize the anticipated benefits of the sub-advisory agreement with StonePine, risks relating to performance and investment of AUM, AUM concentration within limited number of strategies, reputational risk, regulatory compliance, information security policies, procedures and capabilities, litigation risk, insurance coverage, third-party relationships, growth and integration of acquired businesses, AUM growth, key employees and other factors described in the Company's Annual Information Form for the year ended December 31, 2020, Consolidated Financial Statements and Management's Discussion and Analysis for the three and twelve-month periods ended December 31, 2020 and in other documents filed on www.sedar.com from time to time.
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. Fiera Capital does not undertake to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf in order to reflect new events or circumstances, except as required by applicable laws.
About Fiera Capital Corporation
Fiera Capital is a leading independent asset management firm with a growing global presence and approximately C$180.8 billion in assets under management as of September 30, 2021. The Company delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia. 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 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
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