MONTREAL, Nov. 13, 2012 /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 fourth quarter ended September 30, 2012 ("the fourth quarter").
Financial and Operating Highlights
Following the closing of the Natcan transaction, Fiera has changed its fiscal year end from September 30 to December 31. As a result, fiscal 2012 is a fifteen month period ending December 31, 2012.
For the three months ended September 30, 2012:
- AUM increased by $1.3B to $55.2B from the previous quarter ended June 30, 2012 and by $26.2B compared to the quarter ended September 30, 2011.
- Revenue remained stable at $26.4 million compared to the quarter ended June 30, 2012 and increased by $10.3 million from the quarter ended September 30, 2011.
- EBITDA decreased by $1.0 million to $9.4 million from the quarter ended June 30, 2012 and was improved by $ 5.4 million from the quarter ended September 30, 2011.
- The Firm recorded a net earnings of $0.05 per share compared to a net loss of $(0.06) per share for the quarter ended June 30, 2012 and net earnings per share of $0.03 for the quarter ended September 30, 2011.
- Adjusted net earnings for the period were $6.6 million or $0.12 (basic and fully diluted) earnings per share. The adjusted net earnings for the three-month period ended June 30, 2012 and September 30, 2011 were respectively $7.1 million or $0.13 (basic and fully diluted) earnings per share and $2.8 million or $0.08 (basic and fully diluted) earnings per share.
- Subsequent to the end of the quarter, on October 4, 2012 Fiera Capital announced that it reached an agreement with Société Général Private Banking to acquire Canadian Wealth Management Group Inc. ("CWM"), the Calgary-based subsidiary of Société Général Private Banking.
"We continue to focus on growth by expanding our geographic and sectorial presence. Our recent agreement to acquire CWM, a private wealth manager, is in line with the Firm's plan to create a powerful platform for growth, significant revenue and earnings leverage. It solidifies Fiera Capital's position as one of Canada's fastest growing investment managers and adds to our presence in western Canada," said Jean-Guy Desjardins, Chairman CEO and CIO of Fiera Capital. "We see tremendous growth potential for the asset management and private wealth management businesses, particularly in the fast growing market of Alberta. By combining CWM with Fiera Capital Private Wealth, we are adding an experienced and talented team of professionals, with excellent knowledge of an important regional market.''
Fourth Quarter 2012 Financial and Operating Results
The following table provides selected financial information for the three month period ended September 30, 2012 compared to the quarter ended June 30, 2012 and to the same period in 2011.
| Financial Highlights (In thousands) | |||||
| Three months ended | |||||
| September 30, 2012 | June 30, 2012 |
September 30, 2011 | |||
| AUM (in millions) | 55,221 | 53,915 | 29,020 | ||
| Revenue | |||||
| Base management fees | 25,874 | 26,098 | 15,869 | ||
| Performance fees | 525 | 159 | 203 | ||
| 26,399 | 26,257 | 16,072 | |||
| Operating Expenses | 16,991 | 15,833 | 12,077 | ||
| EBITDA | 9,408 | 10,424 | 3,995 | ||
| Net Earnings (Loss) | 3,008 | (3,463) | 1,246 | ||
| PER SHARE | |||||
| EBITDA | 0.17 | 0.18 | 0.11 | ||
| Net earnings (Loss) | 0.05 | (0.06) | 0.03 | ||
| Adjusted net earnings(1) | 0.12 | 0.13 | 0.08 | ||
| (1) Adjusted net earnings per share excludes non-recurring and non-cash items. | |||||
| September 2012 AUM Continuity schedule | |||||
| September 30, 2012 | June 30, 2012 | Q4 NET VARIANCE | |||
| Institutional | 30,573 | 29,645 | 928 | ||
| Private Wealth | 1,098 | 1,101 | (4) | ||
| Retail | 23,551 | 23,168 | 382 | ||
| AUM - end of period | 55,221 | 53,915 | 1,306 | ||
Financial and Operating Results
Revenues for the three-month period ended September 30, 2012 increased by $10.3 million or 64.3% to $26.4 million compared to $16.1 million for the same period in the prior year. The increase in revenues is mainly due to the Natcan acquisition.
Operating expenses increased by $4.9 million or 41% to $17 million for the three-month period ended September 30, 2012, compared to $12.1 million for the same period in 2011. The increase resulted from an overall rise in SG&A expenses of $4.5 million combined with higher external manager expenses of $0.4 million for the three months ended September 30, 2012 following the Natcan acquisition.
For the quarter ended September 30, 2012, the Firm earned $3.0 million or $0.05 (basic and fully diluted). For the three-month period ended September 30, 2011, the Firm earned $1.2 million or $0.03 (both basic and fully diluted). The net earnings were negatively impacted by $3.2 million or $0.06 per share of non-cash items and $0.4 million or $0.01 per share of non-recurring costs (net of income taxes) during the quarter. When added back to the firm's earnings of $3.0 million or 0.05 per share, the adjusted net earnings for the three-month period ended September 30, 2012 were $6.6 million or $0.12 (basic and fully diluted) earnings per share.
Mr. Desjardins continued "Our recent growth initiatives, including the Natcan acquisition, the launch of our activities in the United States, as well as our entry into the institutional real estate market through Fiera Properties, are proceeding as planned. We continue to experience strong momentum in the Institutional sector, the Private Wealth sector's revenues are stabilized and the Retail sector is impacted positively by the benefits of the recent Natcan acquisition."
Dividend
The Board of Directors has declared a dividend of $0.08 per Class A Subordinate Voting share and Class B Special Voting share of Fiera, payable on December 21, 2012 to shareholders of record at the close of business on November 26, 2012. 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
NATIONAL Public Relations
514 843-2060
Additional information relating to the Company, including the Company's annual information form, is on SEDAR at www.sedar.com.
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