CI Financial Reports Record Financial Results for the Third Quarter

Diluted EPS of $(0.19), record adjusted diluted EPS1 of $0.97
EBITDA of $124.8 million, record adjusted EBITDA attributable to shareholders1 of $270.5 million
EBITDA per share of $0.85 and record adjusted EBITDA attributable to shareholders1 per share of $1.85
Operating cash flow of $166.3 million, free cash flow1 of $192.3 million
Operating cash flow per share of $1.13, record free cash flow per share of $1.32
Record total assets of $518.1 billion, up $97.1 billion or 23.1% year over year
Paid $30.3 million in dividends at $0.20 per share
Repurchased over 7.1 million shares under substantial issuer bids completed in July and October
Corient acquired two U.S. wealth management firms with combined assets of approximately $8.1 billion

All financial amounts in Canadian dollars as at September 30, 2024, unless stated otherwise.

CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended September 30, 2024.

“Our momentum continued in the third quarter, with CI producing record results on key measures,” said Kurt MacAlpine, CI Chief Executive Officer. “Total assets grew by 6% over the quarter to a new high of $518.1 billion, while adjusted diluted earnings per share at $0.97 and adjusted EBITDA attributable to shareholders per share at $1.85 were also at record levels.1

“Our efforts in controlling expenses resulted in adjusted selling, general and administrative costs remaining flat relative to the previous quarter while adjusted net revenues were up 3.2%.1 Our overall results demonstrate the operating leverage inherent in our business model,” Mr. MacAlpine said.

“Our Canadian retail asset management business had modest positive net sales this quarter, a marked improvement from the previous three quarters. The investment team at CI Global Asset Management continued to deliver, with more than 70% of assets under management outperforming peer funds over the three and five years ending September 30, 2024. Our performance was also recognized through 16 LSEG Lipper Fund Awards for 2024, making this the second year a row we’ve earned an industry-leading number of Lipper awards.

“As part of modernizing our asset management, CI GAM continues to be very active in enhancing its product lineup,” Mr. MacAlpine said. “During the quarter, we launched a number of ETFs and mutual funds into areas of strong demand, including covered calls and fixed income, and made a number of changes to our private markets funds that will allow for increased investor access to these leading mandates.

“Our U.S. wealth management business continues to produce strong results, with quarter-over-quarter growth in adjusted EBITDA1 of 7.9%,” Mr. MacAlpine said. “This performance reflects the success of the strategy that has made Corient one of the leading fee-only private wealth firms in the United States. This includes selective acquisitions of high-quality registered investment advisor firms and, as previously announced, we completed two acquisitions during the third quarter, adding approximately US$6 billion in assets.

“Our recent capital allocation activities also included the July restart of our normal course issuer bid and a substantial issuer bid completed in October, bringing the total number of shares repurchased this year to approximately 12.7 million,” Mr. MacAlpine said. "In addition, we completed open market repurchases of our 2051 notes, retiring $15.8 million of principal at a significant discount to par."

Operating and financial data highlights

[millions of dollars, except share amounts]

As of and for the quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Total AUM and Client Assets:

Asset Management AUM (2)

135,395

130,063

130,132

125,004

119,040

Canada Wealth Management assets

100,128

95,551

93,726

87,991

81,503

Canada custody (3)

31,886

29,350

28,011

25,567

23,421

U.S. Wealth Management assets (4)

250,646

234,062

222,347

206,282

197,016

Total assets

518,054

489,026

474,216

444,844

420,981

Asset Management Net Inflows:

Retail

(332

)

(1,320

)

(397

)

(110

)

Institutional

(24

)

(43

)

—

(79

)

Australia

213

(24

)

(92

)

230

(105

)

Closed Business

(160

)

(216

)

(212

)

(200

)

(155

)

Total Asset Management Segment

(616

)

(1,620

)

(367

)

(449

)

U.S. Asset Management (5)

147

740

(67

)

(16

)

IFRS Results

Net income attributable to shareholders

(27.6

)

176.4

(154.4

)

(63.5

)

(12.4

)

Diluted earnings per share

(0.19

)

1.15

(1.00

)

(0.40

)

(0.08

)

Pretax income

7.3

231.3

(122.6

)

(38.2

)

20.6

Pretax margin

0.9

23.5

(19.0

(5.3

3.3

Operating cash flow before the change in operating assets and liabilities

166.3

95.9

88.3

185.3

104.7

Adjusted Results (1)

Adjusted net income

141.2

135.5

132.8

128.2

132.8

Adjusted diluted earnings per share

0.97

0.90

0.86

0.81

Adjusted EBITDA

316.8

293.4

289.5

278.3

276.6

Adjusted EBITDA margin

42.0

40.1

41.4

41.7

41.3

Adjusted EBITDA attributable to shareholders

270.5

253.2

246.1

238.7

237.8

Free cash flow

192.3

151.7

156.2

170.9

179.4

Average shares outstanding

144,175,387

149,248,861

153,821,117

158,125,830

161,549,038

Adjusted average diluted shares outstanding

146,222,481

150,662,154

155,018,911

158,885,217

163,619,462

Ending shares outstanding

143,489,243

149,075,523

153,821,117

158,867,975

Total debt

3,741

3,642

3,608

3,507

3,289

Net debt

3,602

3,510

3,480

3,365

3,113

Net debt to adjusted EBITDA

3.3

3.5

3.3

Free cash flow, net debt, adjusted net income, adjusted earnings per share, adjusted diluted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
Includes $36.0 billion, $34.7 billion, $34.4 billion, $33.2 billion and $31.8 billion of assets managed by CI and held by clients of advisors with CI Assante Wealth Management, CI Private Counsel (CIPC) and Aligned Capital Partners as at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
Includes $27.5 billion, $25.6 billion, $24.5 billion, $21.5 billion and $19.7 billion of assets advised by CI and held by clients of advisors with Assante, CIPC, CI Direct Investing and Aligned Capital as at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
Month-end USD/CAD exchange rates of 1.3524, 1.3680, 1.3546, 1.3250 and 1.3582 for September 2024, June 2024, March 2024, December 2023 and September 2023, respectively.
Includes 100% of flows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group and GLASfunds Holdings.

Financial highlights

Third quarter net loss attributable to shareholders was $27.6 million compared to a net profit of $176.4 million in the second quarter of 2024. Excluding non-operating items, adjusted net income attributable to shareholders1 was $141.2 million in the third quarter, up 4.2% from the previous quarter.

Third quarter total net revenues were $785.4 million, down from $986.0 million in the second quarter of 2024. Excluding non-operating items, adjusted total net revenues1 were $754.9 million, up 3.3% from $731.3 million due to higher revenues from all three segments. Included in revenues was a $7.0 million performance fee CI earned in its asset management segment.

Third quarter total expenses increased 3.1% to $778.1 million from $754.7 million in the second quarter of 2024. Excluding non-operating items, adjusted total expenses1 were $513.2 million, up 1.0% from $507.9 million in the previous quarter, primarily due to higher interest expense as well as increased advisor and dealer fees.

Capital allocation

In the third quarter of 2024, CI paid $30.3 million in dividends at a rate of $0.20 per share. The annual dividend rate of $0.80 per share represented a yield of 3.4% on CI’s closing share price of $23.63 on November 13, 2024. The Board of Directors of CI declared a quarterly dividend of $0.20 per share, payable on April 15, 2025 to shareholders of record as of March 31, 2025.

Under a substantial issuer bid which expired on July 8, 2024, CI purchased for cancellation five million common shares at a purchase price of $15.50 per share, for an aggregate price of approximately $77.5 million. In August, CI commenced a subsequent substantial issuer bid, which expired after quarter-end on October 3, 2024. Under that offer, CI purchased for cancellation 2,157,201 common shares at a purchase price of $18.25 per share, for an aggregate price of approximately $39.4 million.

Under its Normal Course Issuer Bid and Automatic Securities Purchase Plan, which were renewed in July, CI repurchased 680,800 shares during the quarter at a cost of $10.9 million, for an average cost of $16.05 per share.

In September, CI announced a debenture offering with a principal amount of $325 million maturing on September 20, 2027.

Third quarter business highlights

Corient completed the acquisitions of two firms with a focus on providing comprehensive wealth management services to ultra-high-net-worth clients and combined assets at the time of acquisition of approximately $8.1 billion (US$5.9 billion). The firms were Emerald Multi-Family Office (EMFO, LLC) of Weston, Florida, and Byron Financial, LLC of Charlotte, North Carolina, which are now operating under the Corient brand.
CI GAM product enhancements included changes to its private markets funds to broaden their appeal, including removing the lock-up period and allowing eligibility for registered plans.
CI GAM also introduced new investment solutions in key market segments, including:
- Three covered call mandates: CI Multi-Sector Covered Call Fund, CI U.S. Aggregate Bond Covered Fund and CI U.S. Aggregate Bond Covered ETF
- Additional options for fixed-income investors: An ETF series of CI Global Unconstrained Bond Fund (TSX: CUBD) and mutual fund and ETF series of CI Global Short-Term Bond Fund (Cboe: CGSB)
- An expansion of its popular “Quality Dividend Growth” suite with the launch of CI Global Quality Dividend Growth ETF (TSX: CGQD.B) and CI Global Quality Dividend Growth Fund.

Following quarter-end:

CI GAM investment funds received 16 LSEG Lipper Fund Awards for Canada for 2024. The awards recognize mutual funds and ETFs that have provided consistently strong risk-adjusted performance, relative to peers. This was the second consecutive year that CI GAM received more individual fund awards than any other company.
CI GAM also launched a suite of six asset allocation mutual funds, which invest in units of the respective versions of the CI Asset Allocation ETFs.

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EST, led by Mr. MacAlpine and Chief Financial Officer Amit Muni. A live webcast of the call and slide presentation can be accessed here or through the Investor Relations section of CI’s website.

Alternatively, investors may listen to the discussion through the following numbers (access code: 014135):

Canada (toll-free): 1-833-950-0062
United States (local): 1-404-975-4839
United States (toll-free): 1-833-470-1428.

A recording of the webcast will be archived on CI’s Investor Relations site.

About CI Financial

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite. CI operates in three segments:

Asset Management, which includes CI Global Asset Management, which operates in Canada, and GSFM, which operates in Australia.
Canadian Wealth Management, operating as CI Wealth, which includes CI Assante Wealth Management, Aligned Capital Partners, CI Assante Private Client, CI Private Wealth, Northwood Family Office, CI Coriel Capital, CI Direct Investing, CI Direct Trading and CI Investment Services.
U.S. Wealth Management, which includes Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.

CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn page.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in the forward-looking statements include that asset levels will remain stable. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.

This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

CI Global Asset Management is a registered business name of CI Investments Inc., a wholly owned subsidiary of CI.

CONSOLIDATED STATEMENT OF INCOME

For the three-month period ended September 30

2024

2023

[in thousands of Canadian dollars, except per share amounts]

REVENUE

Canada asset management fees

383,120

375,557

Trailer fees and deferred sales commissions

(116,226)

(114,720)

Net asset management fees

266,894

260,837

Canada wealth management fees

172,541

146,663

U.S. wealth management fees

274,874

229,025

Other revenues

38,101

40,870

Foreign exchange losses

24,776

(60,439)

Other gains (losses)

8,254

(430)

Total net revenues

785,440

616,526

EXPENSES

Selling, general and administrative

397,622

343,470

Advisor and dealer fees

131,393

110,288

Interest and lease finance

59,330

39,790

Amortization and depreciation

19,007

12,902

Amortization of intangible assets from acquisitions

37,697

34,795

Transaction, integration, restructuring and legal

34,953

23,739

Change in fair value of contingent consideration

1,927

(7,157)

Change in fair value of Preferred Share Liability

89,113

21,420

Other

7,069

16,699

Total expenses

778,111

595,946

Income before income taxes

7,329

20,580

Provision for (recovery of) income taxes

Current

46,487

36,219

Deferred

(12,336)

(3,414)

34,151

32,805

Net income (loss) for the period

(26,822)

(12,225)

Net income (loss) attributable to non-controlling interests

785

190

Net income (loss) attributable to shareholders

(27,607)

(12,415)

Basic earnings per share attributable to shareholders

(0.19)

(0.08)

Diluted earnings per share attributable to shareholders

(0.19)

(0.08)

Other comprehensive income (loss), net of tax

Exchange differences on translation of foreign operations

(14,060)

35,519

Total other comprehensive income, net of tax

(14,060)

35,519

Comprehensive income (loss) for the period

(40,882)

23,294

Comprehensive income (loss) attributable to non-controlling interests

994

668

Comprehensive income (loss) attributable to shareholders

(41,876)

22,626

As at

CONSOLIDATED BALANCE SHEET

September 30, 2024

December 31, 2023

[in thousands of Canadian dollars]

ASSETS

Current

Cash and cash equivalents

144,082

137,029

Client and trust funds on deposit

1,050,831

1,073,378

Investments

32,758

42,781

Accounts receivable and prepaid expenses

411,702

388,029

Assets held for sale

—

326

Income taxes receivable

15,952

33,911

Total current assets

1,655,325

1,675,454

Capital assets, net

157,449

85,077

Right-of-use assets

237,734

229,763

Intangibles and goodwill

7,794,863

7,575,958

Deferred income taxes

90,283

78,642

Other assets

392,231

336,709

Total assets

10,327,885

9,981,603

LIABILITIES AND EQUITY

Current

Accounts payable and accrued liabilities

444,773

378,374

Current portion of provisions and other financial liabilities

292,506

444,200

Dividends payable

57,396

61,528

Client and trust funds payable

1,043,026

1,068,809

Income taxes payable

19,704

15,252

Redeemable unit liabilities

1,306,365

1,089,996

Preferred Share Liability

1,695,283

1,481,419

Current portion of long-term debt

346,653

437,255

Current portion of lease liabilities

28,953

17,575

Total current liabilities

5,234,659

4,994,408

Long-term debt

3,394,364

3,070,149

Provisions and other financial liabilities

64,471

96,952

Other long-term payable

31,260

15,853

Deferred income taxes

475,040

479,150

Lease liabilities

309,915

285,053

Total liabilities

9,509,709

8,941,565

Equity

Share capital

1,341,188

1,436,686

Contributed surplus

47,743

34,828

Deficit

(627,756)

(454,435)

Accumulated other comprehensive income

43,731

10,683

Total equity attributable to the shareholders of the Company

804,906

1,027,762

Non-controlling interests

13,270

12,276

Total equity

818,176

1,040,038

Total liabilities and equity

10,327,885

9,981,603

CONSOLIDATED STATEMENT OF CASH FLOWS

For the three-month period ended September 30

2024

2023

[in thousands of Canadian dollars]

OPERATING ACTIVITIES (*)

Net income for the period

(26,822)

(12,225)

Add (deduct) items not involving cash

Other (gains) losses

(8,254)

430

Change in fair value of contingent consideration

1,927

(7,157)

Change in fair value of Preferred Share Liability

89,112

21,420

Contingent and deferred consideration recorded as compensation

254

4,393

Amortization of loan guarantees

(202)

(459)

Recognition of non-cash vesting of redeemable unit liabilities

59,784

40,596

Equity-based compensation

6,173

9,576

Equity accounted income

(1,486)

(1,387)

Amortization of equity accounted investments

1,419

1,401

Amortization and depreciation

19,007

12,902

Amortization of intangible assets from acquisitions

37,697

34,795

Deferred income taxes

(12,336)

(3,414)

Impairment loss on intangibles

—

3,839

Cash provided by operating activities before net change in operating assets and liabilities

166,273

104,710

Net change in operating assets and liabilities

(8,786)

(10,134)

Cash provided by operating activities

157,487

94,576

INVESTING ACTIVITIES

Cash paid to settle acquisition liabilities

(107,147)

(17,656)

Acquisitions, net of cash acquired

(56,986)

(53,288)

Purchase of investments

(667)

(15)

Proceeds on sale of investments

11,661

181

Additions to capital assets

(17,470)

(6,504)

Decrease in other assets

716

4,857

Additions to intangibles

(4,587)

(1,582)

Cash used in investing activities

(174,480)

(74,007)

FINANCING ACTIVITIES

Repayment of long-term debt

(387,000)

—

Issuance of long-term debt

591,872

95,000

Repurchase of long-term debt

(10,479)

—

Repurchase of share capital

(92,771)

(144,943)

Payment of lease liabilities

(4,759)

(4,719)

Issuance of redeemable unit liabilities, net of redemptions

(34,038)

(176)

Dividends paid to shareholders

(29,815)

(30,517)

Cash provided by financing activities

33,010

(85,355)

Net decrease in cash and cash equivalents during the period

16,017

(64,786)

Cash and cash equivalents, beginning of period

128,065

240,495

Cash and cash equivalents, end of period

144,082

175,709

SUPPLEMENTAL CASH FLOW INFORMATION

(*) Included in operating activities are the following:

Interest paid

21,107

6,823

Income taxes paid

41,355

42,493

ASSETS UNDER MANAGEMENT AND NET FLOWS

[billions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Beginning AUM

130.1

125.0

119.0

122.4

Gross inflows

6.3

8.1

6.7

7.3

5.7

Gross outflows

(6.2

)

(8.7

)

(8.3

)

(7.7

)

(6.2

)

Net inflows/(outflows)

0.1

(0.6

)

(1.6

)

(0.4

)

(0.4

)

Market move and FX

5.3

0.5

6.7

6.3

(2.9

)

Ending AUM

135.4

130.1

125.0

119.0

Proprietary AUM

36.0

34.1

34.4

33.2

31.8

Non-proprietary AUM

99.4

95.9

95.7

91.8

87.2

Average assets under management

132.5

129.2

126.8

121.1

122.1

Annualized organic growth

0.2

(1.9

(5.2

(1.2

(1.5

Gross management fee/average AUM

1.17

1.18

1.19

1.20

1.24

Net management fee/average AUM

0.79

0.80

0.81

0.84

Net Inflows/(Outflows)

Retail

—

(0.3

)

(1.3

)

(0.4

)

(0.1

)

Institutional

—

(0.1

)

Closed business

(0.2

)

(0.2

)

(0.2

)

(0.2

)

(0.2

)

Total Canada net inflows/(outflows)

(0.1

)

(0.6

)

(1.5

)

(0.6

)

(0.3

)

Australia

0.2

—

(0.1

)

0.2

(0.1

)

Total net inflows/(outflows)

0.1

(0.6

)

(1.6

)

(0.4

)

(0.4

)

Retail

[billions of dollars]

Quarters Ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Beginning AUM

108.0

115.1

103.7

99.1

101.7

Net Flows

0.0

(0.3)

(1.3)

(0.4)

-0.1

Market Move / FX

4.3

(6.8)

12.7

5.0

-2.5

Acquisitions

—

Ending AUM

112.3

108.0

115.1

103.7

99.1

Average AUM

110.2

111.5

105.3

100.7

101.5

Institutional

[billions of dollars]

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Beginning AUM

9.2

9.1

8.8

8.3

8.5

Net Flows

—

(0.1)

Market Move / FX

0.4

0.1

0.3

0.5

(0.1)

Acquisitions

—

Ending AUM

9.6

9.2

9.1

8.8

8.3

Average AUM

9.4

9.2

8.9

8.5

AUSTRALIA

[billions of dollars]

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Beginning AUM

5.8

5.7

5.4

4.8

5.0

Net Flows

0.2

0.0

(0.1)

0.2

(0.1)

Market Move / FX

0.2

0.1

0.4

(0.1)

Acquisitions

—

Ending AUM

6.2

5.8

5.7

5.4

4.8

Average AUM

6.0

5.8

5.4

5.0

4.9

CLOSED BUSINESS

[billions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30. 2023

Beginning AUM

7.1

7.3

7.1

6.9

7.2

Net Flows

(0.2)

Market Move / FX

0.4

—

0.4

(0.1)

Acquisitions

—

Ending AUM

7.3

7.1

7.3

7.1

6.9

Average AUM

7.2

7.0

7.2

AUM BY ASSET CLASS

[billions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Balanced

53.5

51.8

52.5

51.4

47.7

Equity

44.6

42.4

42.7

40.1

41.1

Fixed income

12.8

12.0

11.7

11.6

10.5

Alternatives

7.8

7.6

7.7

6.4

5.5

Cash/Other

10.5

10.6

9.8

10.2

9.5

Total Canada asset management

129.1

124.3

124.5

119.6

114.3

Australia

6.2

5.8

5.7

5.4

4.8

Total asset management segment

135.4

130.1

125.0

119.0

CANADA WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Beginning client assets

95.6

93.7

88.0

81.5

82.6

Acquisitions

—

1.3

—

Net flows and market move

4.6

1.8

5.7

5.2

(1.1

)

Ending client assets

100.1

95.6

93.7

88.0

81.5

Average client assets

97.8

94.6

90.9

83.8

83.2

Wealth management fees/average client assets

0.88

0.90

0.89

0.91

0.90

Canada custody

31.9

29.4

28.0

25.6

23.4

Proprietary custody

27.5

25.5

24.5

21.5

19.7

Non-proprietary custody

4.4

3.8

3.5

4.1

3.8

U.S. WEALTH MANAGEMENT CLIENT ASSETS

[billions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Beginning billable client assets

223.7

212.4

196.8

188.2

185.0

Acquisitions/divestitures

8.2

5.6

—

2.2

2.1

Net flows and market move

8.1

5.8

15.5

6.4

1.1

Ending billable client assets

240.0

223.7

212.4

196.8

188.2

Non-billable client assets

10.7

10.3

10.0

9.4

8.8

Total client assets

250.6

234.1

222.3

206.3

197.0

Fees/beginning billable client assets

0.49

0.48

0.49

NON-IFRS MEASURES

In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include:

Adjusted net income and adjusted basic and diluted earnings per share
Adjusted EBITDA and adjusted EBITDA margin
Free cash flow
Net debt.

These non-IFRS measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation:

gains or losses related to foreign currency fluctuations on our cash balances
costs related to our acquisitions including:
- amortization of intangible assets
- change in fair value of contingent consideration
- related advisory fees
- contingent consideration and consideration for strategic recruitment classified as compensation per IFRS
restructuring charges
legal provisions for a class action related to time zone arbitrage
certain gains or losses in assets and investments
costs related to issuing or retiring debt obligations
expenses associated with Corient and CIPW redeemable units.

Further explanations of these Non-IFRS measures can be found in the “Non-IFRS Measures” section of Management’s Discussion and Analysis dated November 14, 2024 available on SEDAR at www.sedar.com or at www.cifinancial.com.

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

[millions of dollars, except per share amounts]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Sep. 30, 2023

Net Income

(26.8)

177.0

(12.2)

Amortization of intangible assets from acquisitions

37.7

36.5

34.8

Amortization of intangible assets for equity accounted investments

1.4

Change in fair value of contingent consideration

1.9

12.6

(7.2)

Change in fair value of Preferred Share Liability

89.1

42.4

21.4

Interest expense

1.0

3.0

(0.1)

Contingent and strategic recruitment consideration recorded as compensation

11.3

25.8

4.4

Non-controlling interest reclassification

0.9

1.1

Accounting for Corient and CIPW Canada redeemable units

82.4

98.6

56.5

Severance

3.7

7.2

Amortization of loan guarantees

(0.2)

(0.5)

FX (gains)/losses

(24.8)

22.6

60.4

Transaction, integration, restructuring and legal

37.2

20.1

23.7

Pass through carried interest revenue

—

(8.7)

Pass through carried interest expense

—

8.7

Other (gains)/losses

(1.8)

2.7

—

Gain on debt retirement

(5.3)

(281.3)

—

Total adjustments

234.4

(7.8)

203.3

Tax effect of adjustments

(27.5)

(2.7)

(24.3)

Less: Non-controlling interest

38.9

31.0

34.0

Adjusted net income

141.2

135.5

132.8

Adjusted earnings per share

0.98

0.91

0.82

Adjusted diluted earnings per share

0.97

0.90

0.81

Average diluted shares outstanding under IFRS

144.2

153.8

177.9

Weighted average impact of RSU awards

2.0

—

Shares convertible into common in connection with an acquisition

—

(3.1)

(14.3)

Adjusted average diluted shares outstanding

146.2

150.7

163.6

EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

[millions of dollars, except per share amounts]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Sep. 30, 2023

Pretax income

7.3

231.3

20.6

Amortization of intangible assets from acquisitions

37.7

36.5

34.8

Amortization of intangible assets for equity accounted investments

1.4

Depreciation and other amortization

19.0

18.4

12.9

Interest and lease finance expense

59.3

55.2

39.8

EBITDA

124.8

342.7

109.5

Change in fair value of contingent consideration

1.9

12.6

(7.2

)

Change in fair value of Preferred Share Liability

89.1

42.4

21.4

Contingent and strategic recruitment consideration recorded as compensation

11.3

25.8

4.4

Non-controlling interest reclassification

0.9

1.1

Accounting for Corient and CIPW Canada redeemable units

82.4

98.6

56.5

Severance

3.7

7.2

Amortization of loan guarantees

(0.2

)

(0.5

)

(0.5

)

FX (gains)/losses

(24.8

)

22.6

60.4

Transaction, integration, restructuring and legal

35.0

19.5

23.7

Pass through carried interest revenue

—

(8.7

)

Pass through carried interest expense

—

8.7

Other (gains)/losses

(1.8

)

2.7

—

Gain on debt retirement

(5.3

)

(281.3

)

—

Total adjustments

192.1

(49.4

)

167.2

Adjusted EBITDA

316.8

293.4

276.6

Less: Non-controlling interest

46.4

40.2

38.9

Adjusted EBITDA attributable to shareholders

270.5

253.2

237.8

Reported net revenue

785.4

986.0

616.5

Less: FX gains/(losses)

24.8

(22.6

)

(60.4

)

Less: Pass through carried interest revenue

—

8.7

Less: Non-Operating Other gains/(losses)

1.8

(2.7

)

0.1

Less: Amortization of equity accounted investments

(1.4

)

(1.4

)

(1.4

)

Less: Gain on debt retirement

5.3

281.3

—

Adjusted net revenue

754.9

731.3

669.6

Adjusted EBITDA margin

42.0

40.1

41.3

FREE CASH FLOW

[millions of dollars]

Quarters ended

Sep. 30, 2024

Jun. 30, 2024

Sep. 30, 2023

Cash provided by operating activities

157.5

176.8

94.6

Less: Net change in operating assets and liabilities

(8.8)

80.9

(10.1)

Operating cash flow before the change in operating assets and liabilities

166.3

95.9

104.7

FX (gains)/losses

(24.8)

22.6

60.4

Transaction, integration, restructuring and legal

37.2

20.1

23.7

Other (gains)/loses

—

(3.8)

Total adjustments

12.4

42.7

80.3

Tax effect (recovery) of adjustments

15.4

14.6

(4.8)

Less: Non-controlling interest

1.8

1.4

0.9

Free cash flow

192.3

151.7

179.4

NET DEBT

Quarters ended

[millions of dollars]

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Current portion of long-term debt

346.7

525.0

482.4

437.3

157.2

Long-term debt

3,394.4

3,117.2

3,125.2

3,070.1

3,131.9

3,741.0

3,642.2

3,607.6

3,507.4

3,289.1

Less:

Cash and short-term investments

144.1

128.1

126.1

137.0

175.7

Marketable securities

18.1

27.8

27.0

28.2

22.4

Add:

Regulatory capital and non-controlling interests

23.6

24.0

25.4

22.4

22.3

Net Debt

3,602.4

3,510.4

3,479.9

3,364.6

3,113.3

Adjusted EBITDA

270.5

253.2

246.1

238.7

237.8

Adjusted EBITDA, annualized

1,081.9

1,012.7

984.4

954.9

943.3

Gross leverage (Gross debt/Annualized adjusted EBITDA)

3.5

3.6

3.7

3.5

Net leverage (Net debt/Annualized adjusted EBITDA)

3.3

3.5

3.3

SUMMARY OF QUARTERLY RESULTS

[millions of dollars, except per share amounts]

IFRS Results

Adjusted Results

For the quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Revenues

Asset management fees

383.1

374.9

371.6

361.9

375.6

383.1

374.9

371.6

361.9

375.6

Trailer fees and deferred sales commissions

(116.2)

(113.9)

(113.6)

(111.3)

(114.7)

(116.2)

(113.9)

(113.6)

(111.3)

(114.7)

Net asset management fees

266.9

261.0

258.0

250.6

260.8

266.9

261.0

258.0

250.6

260.8

Canada wealth management fees

172.5

168.7

159.7

150.5

146.7

172.5

168.7

159.7

150.5

146.7

U.S. wealth management fees

274.9

261.3

242.1

226.8

229.0

274.9

261.3

242.1

226.8

229.0

Other revenues

38.1

34.8

35.4

31.6

40.9

39.5

36.3

36.8

37.8

33.6

FX gains/(losses)

24.8

(22.6)

(54.6)

52.2

(60.4)

—

Other gains/(losses)

8.3

282.7

5.0

3.8

(0.4)

1.1

4.1

2.0

0.9

(0.5)

Total net revenues

785.4

986.0

645.7

715.6

616.5

754.9

731.3

698.6

666.7

669.6

Expenses

Selling, general & administrative

397.6

432.2

432.0

375.9

343.5

300.5

301.1

282.3

272.4

275.8

Advisor and dealer fees

131.4

128.6

120.8

113.8

110.3

131.4

128.6

120.8

113.8

110.3

Other

7.1

9.3

7.1

(0.4)

16.7

6.2

8.3

6.1

5.8

6.9

Interest and lease finance expense

59.3

55.2

48.3

43.9

39.8

57.8

51.7

45.1

41.2

39.9

Depreciation and other amortization

19.0

18.4

17.2

17.3

12.9

17.4

18.2

16.0

15.5

12.9

Amortization of intangible assets from acquisitions

37.7

36.5

35.0

36.1

34.8

—

Transaction, integration, restructuring and legal

35.0

19.5

23.4

39.9

23.7

—

Change in fair value of contingent consideration

1.9

12.6

32.1

26.8

(7.2)

—

Change in fair value of Preferred Share Liability

89.1

42.4

52.3

100.5

21.4

—

Total expenses

778.1

754.7

768.3

753.7

595.9

513.2

507.9

470.3

448.7

445.8

Pretax income

7.3

231.3

(122.6)

(38.2)

20.6

241.7

223.5

228.4

218.0

223.9

Income tax expense

34.2

54.2

31.9

25.1

32.8

61.6

57.0

58.2

55.6

57.1

Net income

(26.8)

177.0

(154.5)

(63.2)

(12.2)

180.1

166.5

170.1

162.4

166.8

Less: Non-controlling interest

0.8

0.6

(0.1)

0.3

0.2

38.9

31.0

37.4

34.2

34.0

Net income attributable to shareholders

(27.6)

176.4

(154.4)

(63.5)

(12.4)

141.2

135.5

132.8

128.2

132.8

Basic earnings per share

(0.19)

1.18

(1.00)

(0.40)

(0.08)

0.98

0.91

0.86

0.81

0.82

Diluted earnings per share

(0.19)

1.15

(1.00)

(0.40)

(0.08)

0.97

0.90

0.86

0.81

RESULTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

Adjusted Results

For the quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Revenues

Asset management fees

388.1

379.9

376.3

366.4

380.1

388.1

379.9

376.3

366.4

380.1

Trailer fees and deferred sales commissions

(123.9)

(121.4)

(121.0)

(118.7)

(122.2)

(123.9)

(121.4)

(121.0)

(118.7)

(122.2)

Net asset management fees

264.3

258.4

255.4

247.7

257.9

264.3

258.4

255.4

247.7

257.9

Other revenues

10.7

6.2

4.4

4.7

4.8

10.7

6.2

4.4

4.7

4.8

FX gains/(losses)

25.7

(22.7)

(58.7)

56.1

(61.9)

—

Other gains/(losses)

7.3

281.9

4.4

1.9

(0.4)

1.7

3.5

1.7

1.9

(0.5)

Total net revenues

308.0

523.8

205.5

310.4

200.3

276.7

268.1

261.5

254.3

262.2

Expenses

Selling, general & administrative

105.9

111.9

108.0

108.7

110.9

104.1

106.1

101.2

97.4

105.2

Other

0.3

3.2

0.1

0.3

0.7

0.3

3.2

0.1

0.3

0.7

Interest and lease finance expense

0.6

0.5

2.5

0.6

0.5

2.5

Depreciation and other amortization

4.3

4.4

4.0

3.9

2.5

4.3

4.4

4.0

3.9

2.5

Amortization of intangible assets from acquisitions

0.6

—

Transaction, integration, restructuring and legal

10.4

0.3

1.3

2.0

0.6

—

Change in fair value of contingent consideration

3.3

(0.3)

3.5

8.8

(0.6)

—

Total expenses

125.5

120.6

118.0

124.7

117.2

109.3

114.2

105.7

102.0

111.0

Pretax income

182.5

403.2

87.5

185.7

83.1

167.4

153.9

155.7

152.3

151.2

Non-IFRS adjustments

Pretax income

182.5

403.2

87.5

185.7

83.1

167.4

153.9

155.7

152.3

151.2

Amortization of intangible assets from acquisitions

0.6

—

Depreciation and other amortization

4.3

4.4

4.0

3.9

2.5

4.3

4.4

4.0

3.9

2.5

Interest and lease finance expense

0.6

0.5

2.5

0.6

0.5

2.5

EBITDA

188.1

408.7

92.6

190.7

88.7

172.4

158.8

160.2

156.6

156.2

Change in fair value of contingent consideration

3.3

(0.3)

3.5

8.8

(0.6)

—

FX (gains)/losses

(25.7)

22.7

58.7

(56.1)

61.9

—

Severance

1.8

5.8

6.9

8.8

6.1

—

Amortization of loan guarantees

—

2.5

(0.5)

—

Transaction, integration, restructuring and legal

10.4

0.3

1.3

2.0

0.6

—

Other (gains)/losses

(0.2)

2.9

(2.7)

—

Gain on debt retirement

(5.3)

(281.3)

—

Total adjustments

(15.7)

(249.9)

67.7

(34.0)

67.5

—

Adjusted EBITDA

172.4

158.8

160.2

156.6

156.2

172.4

158.8

160.2

156.6

156.2

Less: Non-controlling interest

0.1

(0.1)

(0.4)

0.1

0.2

0.1

(0.1)

(0.4)

0.1

0.2

Adjusted EBITDA attributable to shareholders

172.3

158.9

160.6

156.5

156.0

172.3

158.9

160.6

156.5

156.0

RESULTS OF OPERATIONS - CANADA WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

Adjusted Results

For the quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Revenues

Canada wealth management fees

215.9

211.4

201.0

192.8

189.1

215.9

211.4

201.0

192.8

189.1

Other revenues

32.6

33.3

33.4

31.7

30.7

32.7

33.4

31.7

30.7

FX gains/(losses)

(0.8)

—

1.0

(1.8)

1.4

—

Total net revenues

247.8

244.7

235.4

222.7

221.1

248.6

244.7

234.4

224.6

219.8

Expenses

Selling, general & administrative

58.4

57.1

55.4

50.6

52.2

57.0

56.8

53.9

49.8

49.2

Advisor and dealer fees

166.2

162.9

153.9

147.9

144.4

166.2

162.9

153.9

147.9

144.4

Other

5.4

6.1

6.3

6.2

5.9

4.5

5.0

5.3

5.1

4.8

Interest and lease finance expense

0.3

0.4

0.3

0.6

0.3

0.4

0.3

0.6

Depreciation and other amortization

5.0

4.8

4.9

5.1

5.2

5.0

4.8

4.9

5.1

5.2

Amortization of intangible assets from acquisitions

2.3

2.2

—

Transaction, integration, restructuring and legal

—

5.4

0.4

—

Change in fair value of contingent consideration

0.2

0.3

1.6

3.5

(0.4)

—

Total expenses

237.9

233.9

224.8

221.3

210.5

233.1

229.9

218.4

208.3

204.2

Pretax income

9.9

10.8

10.6

1.4

10.7

15.5

14.8

16.0

16.3

15.6

Non-IFRS adjustments

Pretax income

9.9

10.8

10.6

1.4

10.7

15.5

14.8

16.0

16.3

15.6

Amortization of intangible assets from acquisitions

2.3

2.2

—

Amortization of intangible assets for equity accounted investments

0.1

—

Depreciation and other amortization

5.0

4.8

4.9

5.1

5.2

5.0

4.8

4.9

5.1

5.2

Interest and lease finance expense

0.3

0.4

0.3

0.6

0.3

0.4

0.3

0.6

EBITDA

17.6

18.3

9.1

18.7

20.8

19.9

21.3

21.7

21.4

Change in fair value of contingent consideration

0.2

0.3

1.6

3.5

(0.4)

—

Contingent consideration recorded as compensation (included in SG&A)

0.1

—

Accounting for CIPW Canada redeemable units (included in SG&A)

1.6

(0.3)

0.7

2.0

—

FX (gains)/losses

0.8

—

(1.0)

1.8

(1.4)

—

Severance

(0.3)

0.5

0.7

—

0.9

—

Transaction, integration, restructuring and legal

—

5.4

0.4

—

Non-controlling interest reclassification (included in Other)

0.9

1.1

1.0

1.1

—

Total adjustments

3.2

1.7

3.1

12.6

2.7

—

Adjusted EBITDA

20.8

19.9

21.3

21.7

21.4

20.8

19.9

21.3

21.7

21.4

Less: Non-controlling interest

1.8

1.9

1.8

2.0

1.2

1.8

1.9

1.8

2.0

1.2

Adjusted EBITDA attributable to shareholders

19.0

18.0

19.5

19.7

20.1

19.0

18.0

19.5

19.7

20.1

RESULTS OF OPERATIONS - U.S. WEALTH MANAGEMENT SEGMENT

[millions of dollars, except per share amounts]

IFRS Results

Adjusted Results

For the quarters ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Dec. 31, 2023

Sep. 30, 2023

Revenues

U.S. wealth management fees

274.9

261.3

242.1

226.8

229.0

274.9

261.3

242.1

226.8

229.0

Other revenues

5.1

5.7

7.4

4.5

14.9

6.5

7.0

8.8

10.6

7.6

FX gains/(losses)

(0.2)

0.1

3.1

(2.1)

0.1

—

Other gains/(losses)

1.0

0.8

0.6

1.9

—

(0.6)

0.6

0.3

(1.0)

—

Total net revenues

280.8

267.8

253.2

231.1

244.0

280.8

268.9

251.1

236.4

236.6

Expenses

Selling, general & administrative

249.5

278.9

283.7

231.1

195.2

155.5

153.9

142.4

139.7

136.0

Other

1.6

0.4

0.8

(6.9)

10.1

1.6

0.4

0.8

0.4

1.4

Interest and lease finance expense

3.9

5.1

5.2

4.0

0.8

3.5

4.7

3.5

2.1

0.8

Depreciation and other amortization

9.7

9.2

8.3

5.2

9.4

8.9

7.0

6.5

5.2

Amortization of intangible assets from acquisitions

34.7

33.6

32.1

33.2

32.0

—

Transaction, integration, restructuring and legal

24.5

19.1

22.1

32.5

22.7

—

Change in fair value of contingent consideration

(1.5)

12.6

27.1

14.5

(6.1)

—

Change in fair value of Preferred Share Liability

89.1

42.4

52.3

100.5

21.4

—

Total expenses

411.4

401.3

431.7

417.2

281.3

170.0

167.9

153.8

148.8

143.4

Pretax income

(130.6)

(133.5)

(178.4)

(186.1)

(37.3)

110.7

101.0

97.4

87.7

93.2

Non-IFRS adjustments

Pretax income

(130.6)

(133.5)

(178.4)

(186.1)

(37.3)

110.7

101.0

97.4

87.7

93.2

Amortization of intangible assets from acquisitions

34.7

33.6

32.1

33.2

32.0

—

Amortization of intangible assets for equity accounted investments

1.3

1.4

1.3

—

Depreciation and other amortization

9.7

9.2

8.3

5.2

9.4

8.9

8.3

6.5

5.2

Interest and lease finance expense

3.9

5.1

5.2

4.0

0.8

3.5

4.7

5.2

2.1

0.8

EBITDA

(81.0)

(84.2)

(131.5)

(139.3)

2.1

123.7

114.6

100.0

96.3

99.3

Change in fair value of contingent consideration

(1.5)

12.6

27.1

14.5

(6.1)

—

Change in fair value of Preferred Share Liability

89.1

42.4

52.3

100.5

21.4

—

Contingent and strategic recruitment consideration recorded as compensation (included in SG&A)

11.2

25.7

13.7

1.9

4.3

—

Non-controlling interest reclassification (included in Other)

—

(2.5)

—

Accounting for redeemable units (included in SG&A)

80.8

99.0

126.0

93.2

54.7

—

FX (gains)/losses

0.2

(0.1)

(3.1)

2.1

(0.1)

—

Severance

2.1

0.9

2.2

0.2

—

Amortization of loan guarantees

(0.2)

(0.5)

(0.6)

(3.8)

—

Transaction, integration, restructuring and legal

24.5

19.1

22.1

36.1

22.7

—

Pass through carried interest revenue (included in Other revenues)

—

4.8

(8.7)

—

Pass through carried interest expense (included in Other)

—

(4.8)

8.7

—

Other (gains)/losses

(1.6)

(0.2)

(0.4)

(2.9)

—

Total adjustments

204.6

198.9

239.4

239.3

97.2

—

Adjusted EBITDA

123.7

114.6

107.9

100.0

99.3

123.7

114.6

107.9

100.0

99.3

Less: Non-controlling interest

44.5

38.3

41.9

37.4

37.6

44.5

38.3

41.9

37.4

37.6

Adjusted EBITDA attributable to shareholders

79.2

76.3

66.0

62.5

61.6

79.2

76.3

66.0

62.5

61.6

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114760691/en/

Investor Relations Jason Weyeneth, CFA Vice-President, Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com Media Canada Murray Oxby Vice-President, Communications 416-681-3254 moxby@ci.com United States Jimmy Moock Managing Partner, StreetCred 610-304-4570 jimmy@streetcredpr.com ci@streetcredpr.com

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