Fiera Capital reports solid revenue and strong AUM growth for the third
quarter of 2013
MONTREAL, Nov. 8, 2013 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ)
("Fiera Capital" or "the Firm"), a leading independent Canadian investment
firm, today reported its financial results for the third quarter ended
September 30, 2013 ("the third quarter").
"The quarter was excellent on many counts," said Jean-Guy Desjardins,
Chairman, CEO and CIO of Fiera Capital. "We delivered robust results, with
record high AUM and revenue levels for the quarter. Our continuous business
pipeline translated into a significant organic inflow in new assets, which
will be reflected fully in our fourth-quarter's revenue figure."
"We executed on our stated objective to generate growth in the U.S. market
with the acquisitions of two prominent wealth management firms based in Los
Angeles and New York City. Consequently, we created a powerful $10.5 billion
AUM North American private wealth platform," Mr. Desjardins added. "We are
also very proud that our North American expansion strategy already creates
positive momentum across all our distribution channels, as evidenced by our
first mandates won in the U.S. institutional sector."
Financial and Corporate Highlights
For the three months ended September 30, 2013:
-- Assets under management ("AUM") increased by $2 billion, or
3.2%, to $67.1 billion as at September 30, 2013, from $65.1
billion from June 30, 2013 and increased by $11.4 billion, or
21%, from September 30, 2012.
-- Revenue increased by $1.9 million, or 6%, to $35.1 million
versus the previous quarter ended June 30, 2013, and by $8.7
million, or 33%, from the corresponding quarter ended September
-- Adjusted earnings before interest, taxes, depreciation and
amortization (adjusted EBITDA) remained stable at $12.1 million
compared to the quarter ended June 30, 2013, and increased by
$2.4 million or 24% from the quarter ended September 30, 2012.
-- The Firm recorded net earnings of $1.5 million or $0.03 per
share versus net earnings of $3.4 million, or $0.06 per share,
for the quarter ended June 30, 2013, and net earnings of $3
million, or $0.05 per share, for the quarter ended September
-- Adjusted net earnings for the period were $8.7 million, or
$0.15 (basic and fully diluted) per share, compared to adjusted
net earnings of $8.9 million, or $0.16 per share, for the
previous quarter ended June 30, 2013, and adjusted net earnings
of $6.6 million, or $0.12 per share, for the period ended
September 30, 2012.
-- Selling, general and administration expenses ("SG&A") totalled
$22.7 million, an increase of $2.0 million, or 9.5%, from the
previous quarter mainly due to higher performance-related
compensation of the investment team, combined with the full
impact of the acquisition of GMP assets.
-- On October 31, 2013, subsequent to the quarter-end, Fiera
Capital announced the closing of the transactions to acquire
Bel Air Investment Advisors of Los Angeles and Wilkinson
O'Grady of New York City for total consideration of US$156.25
million. These acquisitions add $8.5 billion in AUM to Fiera
Capital's private wealth segment.
-- To fund a portion of the purchase price for the acquisition of
Bel Air, Fiera Capital issued $105 million in equity financing
on a private placement bought deal basis, concurrent with the
Third Quarter 2013 Financial and Operating Results
The following table provides selected financial information for the quarter
ended September 30, 2013 compared to the quarter ended June 30, 2013, and to
the same period in 2012.
Financial Highlights ($ in thousands)
September 30, 2013 June 30, 2013 September 30, 2012
AUM (in $ millions) 67,146 65,092 55,681
fees 34,388 32,860 25,874
assets 294 299 519
assets 429 19 6
Total revenue 35,111 33,178 26,339
SG&A and external
manager expenses 23,236 21,099 16,991
Other expenses 10,381 8,965 6,400
Total expenses 33,617 30,064 23,391
Net earnings 1,494 3,114 3,008
shareholders 1,508 3,364 3,008
interest (14) (250) -
1,494 3,114 3,008
(1)) 12,085 12,858 9,717
Net earnings 1,494 3,114 3,008
earnings((2)) 8,717 8,924 6,597
(1)) 0.22 0.23 0.17
Net earnings 0.03 0.06 0.05
Earnings((2)) 0.15 0.16 0.12
(1) Adjusted EBITDA excludes share-based compensation, acquisition and
restructuring related costs .
(2) Adjusted net earnings exclude non-recurring and non-cash items.
Fiera Capital selected adjusted EBITDA and adjusted net earnings as
non-IFRS key performance measures. These non-IFRS measures are
defined in the Company's MD&A.
Assets under Management (in $ millions)
September 30, 2013 June 30, 2013 September 30, 2012
Institutional 39,871 38,162 31,033
Private Wealth 2,049 1,948 1,098
Retail 25,226 24,982 23,550
AUM- end of period 67,146 65,092 55,681
Financial and Operating Results
Revenues for the quarter ended September 30, 2013 increased by $8.7 million or
33% to $35.1million compared to $26.4 million for the same period of the
prior year. The increase in revenues is due primarily to the Firm's
acquisitions of assets from CWM, UBS and GMP combined with higher based
management fees resulting from additional AUM following positive cash flows
and new mandates.
SG&A and external manager expenses increased by $6.2 million, or 36%, to $23.2
million for the quarter ended September 30, 2013 compared to $17.0 million for
the same period in 2012. The increase resulted from overall SG&A expenses of
$6.4 million following the acquisition of assets from CWM, UBS and GMP, offset
by lower external manager expenses of $0.2million for the three months ended
September 30, 2013
Adjusted EBITDA increased by $2.4 million, or 24%, to $12.1 million for the
quarter ended September 30, 2013, compared to $9.7 million for the same period
Adjusted EBITDA per share was $0.22 (basic and fully diluted) for the quarter
ended September 30, 2013 compared to Adjusted EBITDA per share of $0.17 (basic
and fully diluted) for the quarter ended September 30, 2012.
For the quarter ended September 30, 2013, the Firm earned $1.5 million, or
$0.03 per share (basic and fully diluted), compared to net earnings of $3.0
million, or $0.05 per share (basic and fully diluted), for the quarter ended
September 30, 2012. The net earnings of the quarter ended September 30, 2013
were negatively affected by the change in fair value of derivative financial
instruments of $2.7 million versus the quarter ended September 30, 2012.
Net earnings were negatively affected by $5.9 million or $0.10 per share of
non-cash items and $1.4 million or $0.02 per share of acquisition and
restructuring-related costs (net of income taxes) during the quarter. When
added back to the Firm's net earnings of $1.5 million, or $0.03 per share,
adjusted net earnings for the quarter ended September 30, 2013, were $8.7
million, or $0.15 per share (basic and fully diluted), compared to adjusted
net earnings of $6.6 million, or $0.12 per share (basic and fully diluted),
for the same period in 2012.
The Board of Directors has declared a dividend of $0.10 per Class A
subordinate voting share and Class B Special Voting share of Fiera Capital,
payable on December 18, 2013, to shareholders of record at the close of
business on November 20, 2013.The dividend is an eligible dividend for
income tax purposes.
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
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 and annual
consolidated financial statements, and its 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 publicly traded, independent investment firm. The
Firm is one of only a handful of full service, multi-product investment firms
in Canada, offering clients a proven top tier track record in equity and fixed
income management as well as depth and expertise in asset allocation and
alternative investments. www.fieracapital.com
SOURCE Fiera Capital Corporation
Mélanie Tardif, CPA, CMA Director, Corporate Communications and Investor
Relations Fiera Capital Corporation 514-954-6456 firstname.lastname@example.org
Additional information relating to the Firm, including it's Annual
Information Form, is available on SEDAR atwww.sedar.com.
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