MONTREAL, May 6, 2014 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital", "the Company" or "the Firm"), a leading independent Canadian investment firm, announced its financial results for the first quarter ended March 31, 2014 ("the first quarter").
"We are pleased to start off 2014 on such a high note. Our AUM at the end of the first quarter translated into the positive growth of our top line, as a result of the successful integration of our U.S. acquisitions, strong market performance and organic initiatives," said Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera Capital. "We are also very proud of our product offering. Our solutions are gaining significant traction and recognition outside the Canadian market, as evidenced by the ongoing success of our Global equity strategy abroad."
Key Financial and Corporate Highlights
- Assets under management ("AUM") increased by $2.9 billion, or 3.8%, to $80.4 billion as at March 31, 2014, from $77.5 billion as at December 31, 2013, and increased by $14.7 billion, or 22.4%, from March 31, 2013.
- Base management fees and other revenue increased by $5.2 million, or 11%, to $49.5 million for the first quarter, versus the previous quarter ended December 31, 2013, and increased by $19.3 million, or 64%, from the corresponding quarter ended March 31, 2013.
- Performance fees reached $0.5 million for the current quarter compared to $0.1 million for the corresponding quarter of the prior year. Performance fees are generally recognized in the fourth quarter of each year and amounted to $11.0 million for the previous quarter ended December 31, 2013.
- On a rolling basis, the last twelve months earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") margin stood at 36.3%.
- During the quarter, the Firm won significant new mandates across the border as a result of its top-performing Global equity strategy.
- The Firm launched the Fiera High Yield Bond Fund, an addition to its existing suite of fixed income strategies for institutional and private wealth investors, as well as the Fiera Private Infrastructure Fund available to accredited investors.
First Quarter 2014 Financial and Operating Results
The following table provides selected financial information for the three-month period ended March 31, 2014, compared to the quarter ended December 31, 2013, and to the same period in 2013.
Key Financial Highlights ($ in thousands except per share data)
| Quarters ended | |||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |||
| AUM ($ in millions) | 80,412 | 77,485 | 65,702 | ||
| Revenue | |||||
| Base management fees and other revenue | 49,465 | 44,243 | 30,119 | ||
| Performance fees -Traditional assets | 483 | 6,529 | 60 | ||
| Performance fees - Alternative assets | 15 | 4,450 | 37 | ||
| Total revenue | 49,963 | 55,222 | 30,216 | ||
| Expenses | |||||
| SG&A and external managers | 37,115 | 33,609 | 19,272 | ||
| Other expenses | 10,571 | 13,201 | 9,358 | ||
| Total expenses | 47,686 | 46,810 | 28,630 | ||
| Net earnings | 2,277 | 8,412 | 1,586 | ||
| Attributable to: | |||||
| Company's shareholders | 2,678 | 8,481 | 1,586 | ||
| Non-controlling interest | (401) | (69) | - | ||
| 2,277 | 8,412 | 1,586 | |||
| EARNINGS | |||||
| Adjusted EBITDA(1) | 15,127 | 22,941 | 11,344 | ||
| Net earnings | 2,277 | 8,412 | 1,586 | ||
| Adjusted net earnings(2) | 12,318 | 18,313 | 7,483 | ||
| BASIC PER SHARE | |||||
| Adjusted EBITDA(1) | 0.22 | 0.36 | 0.20 | ||
| Net earnings | 0.04 | 0.13 | 0.03 | ||
| Adjusted net earnings(2) | 0.18 | 0.29 | 0.13 | ||
| DILUTED PER SHARE | |||||
| Adjusted EBITDA(1) | 0.22 | 0.35 | 0.20 | ||
| Net earnings | 0.04 | 0.13 | 0.03 | ||
| Adjusted net earnings(2) | 0.18 | 0.28 | 0.13 | ||
| (1) | Adjusted EBITDA excludes non-cash 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)
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |
| Institutional | 43,112 | 41,478 | 38,816 |
| Private Wealth | 10,728 | 10,535 | 1,892 |
| Retail | 26,572 | 25,472 | 24,994 |
| AUM - end of period | 80,412 | 77,485 | 65,702 |
Financial and Operating Results
Revenue for the quarter ended March 31, 2014 increased by $19.8 million, or 65%, to $50.0 million compared to $30.2 million for the same period in the prior year. The increase in revenue is primarily due to various business acquisitions combined with the organic growth in AUM.
Selling, general and administration ("SG&A") and external managers expenses increased by $17.8 million, or 93%, to $37.1 million for the quarter ended March 31, 2014, compared to $19.3 million for the same period in 2013. Most of the increase resulted from the acquisitions of UBS Global Asset Management (Canada) Inc., GMP Investment Management, Bel Air Investment Advisors LLC, and Wilkinson O'Grady & Co. Inc. while external managers expenses increased by $0.4 million for the three months ended March 31, 2014.
Adjusted EBITDA increased by $3.8 million, or 33%, to $15.1 million for the quarter ended March 31, 2014, compared to $11.3 million for the same period of 2013.
Adjusted EBITDA per share was $0.22 (basic and diluted) for the quarter ended March 31, 2014, compared to adjusted EBITDA per share of $0.20 (basic and diluted) for the quarter ended March 31, 2013.
For the quarter ended March 31, 2014, the Firm earned $2.7 million, or $0.04 per share (basic and diluted), compared to net earnings of $1.6 million, or $0.03 per share (basic and diluted), for the quarter ended March 31, 2013.
Net earnings were negatively affected by $9.4 million, or $0.14 per share (basic and diluted), of non-cash items, and by $0.3 million of acquisition and restructuring costs (net of income taxes) during the quarter. When added back to the Firm's net earnings of $2.7 million, or $0.04 per share (basic and diluted), adjusted net earnings for the quarter ended March 31, 2014, were $12.3 million, or $0.18 per share (basic and diluted), compared to adjusted net earnings of $7.5 million, or $0.13 per share (basic and diluted), for the same period in 2013.
Dividend
The Board of Directors has declared a dividend of $0.11 per Class A subordinate voting share and Class B special voting share of Fiera Capital, payable on June 18, 2014, to shareholders of record at the close of business on May 19, 2014. The dividend is an eligible dividend for income tax purposes.
Conference Call
Fiera Capital will hold a conference call at 10:30 a.m. (Eastern Time) on May 6, 2014, to discuss these results. The telephone number to access the conference call is 1-888-231-8191 (toll-free), conference ID: 30830845.
The conference call will also be accessible via webcast in the Investor section of Fiera Capital's Website (www.fieracapital.com), under Events and Presentations.
A replay of the call will be available until May 13, 2014. The telephone numbers to access the replay of the call is 1-855-859-2056 (toll-free), access code 30830845. The replay of the conference call will also be available in the Investor section of the Website under Events and Presentations, in the days following the event.
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, multiproduct 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
[email protected]
Additional information relating to the Firm, including its Annual Information Form, is available on SEDAR at www.sedar.com.
Share this article