Fiera Capital reports solid revenue and strong AUM growth for the third quarter of 2013

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
        30, 2012.
    --  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
        30, 2012.
    --  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
        transaction.

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)
                                                                       
                                               Quarters ended
                    September 30, 2013 June 30, 2013 September 30, 2012

AUM (in $ millions)             67,146        65,092             55,681

Revenue                                                                

  Base management
  fees                          34,388        32,860             25,874

  Performance fees
  - Traditional
  assets                           294           299                519

  Performance fees
  - Alternative
  assets                           429            19                  6

Total revenue                   35,111        33,178             26,339

Expenses                                                               

  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

Attributable to:                                                       

  Company's
  shareholders                   1,508         3,364              3,008

  Non-controlling
  interest                        (14)         (250)                  -
                                 1,494         3,114              3,008

EARNINGS                                                               

  Adjusted EBITDA(
  (1))                          12,085        12,858              9,717

  Net earnings                   1,494         3,114              3,008

  Adjusted net
  earnings((2))                  8,717         8,924              6,597
                                                                       

PER SHARE                                                              

  Adjusted EBITDA(
  (1))                            0.22          0.23               0.17

  Net earnings                    0.03          0.06               0.05

  Adjusted Net
  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 
of 2012.

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.

Dividend

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.

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 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 mtardif@fieracapital.com 
Additional information relating to the Firm, including it's Annual  
Information Form, is available on SEDAR atwww.sedar.com. 
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CO: Fiera Capital Corporation
ST: Quebec
NI: FIN ERN DIV FIN  
-0- Nov/08/2013 13:00 GMT