MONTREAL, Aug. 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 third quarter ended June 30, 2012 ("the third quarter").
Financial and Operating Highlights
For the three months ended June 30, 2012:
- With assets under management of $53.9 billion, Fiera Capital becomes the fourth largest independent asset manager in Canada following the acquisition of Natcan on April 2, 2012.
- Coincident with the Natcan acquisition, the Firm changed its name to Fiera Capital Corporation.
- AUM increased by $25.2B to $53.9B from the previous quarter ended March 31, 2012 and by $23.9B compared to the quarter ended June 30, 2011.
- Revenue rose by $10.7 million to $26.3 million compared to the quarter ended March 31, 2012 and by $8.7 million from the quarter ended June 30, 2011.
- EBITDA improved by $7.0 million to $10.4 million from the quarter ended March 31, 2012 and by 5.4 million from the quarter ended June 30, 2011.
- The Firm recorded a net loss of $0.06 per share compared to a net loss of $0.01 per share for the quarter ended March 31, 2012 and net earnings per share of $0.08 for the quarter ended June 30, 2011.
- Adjusted net earnings for the period were $7.1 million or $0.13 (basic and fully diluted) earnings per share. The adjusted net earnings for the three-month period ended March 31, 2012 and June 30, 2011 were respectively $2.6 million or $0.07 (basic and fully diluted) earnings per share and $4.3 million or $0.12 (basic and fully diluted) earnings per share.
- During the quarter, the Firm won $1.8 billion in new assets under management. Income streams from the new AUM will begin in the fourth quarter of 2012.
- The Firm took advantage of favourable market conditions and entered into derivative financial instruments which consist of exchanging a variable rate for a fixed rate of 1.835 % ending in March 2017. The variation in the fair value of the derivative financial instruments that was recorded as expenses amounted to $2.3 millionfor the quarter ended June 30, 2012.
- Primarily as a result of the Natcan acquisition, which was partially paid for by the issue of 19.732 million Class A shares, fully diluted Class A and Class B shares outstanding increased to 56,569,578 shares compared to 36,575,630 Class A and Class B shares outstanding at June 30, 2011.
"Natcan's investment and servicing activities have been fully integrated into the operations of Fiera during the quarter, and we are now operating as a firm with a single focus - our clients," said Jean-Guy Desjardins, Chairman CEO and CIO of Fiera Capital. "In the process, we achieved most of the anticipated synergies. But most importantly, both teams are working together to better serve our clients, and more than ever, we believe that the Firm's larger resources put us in an outstanding position to offer our clients the best investment solutions and to continue to invest in a number of growth initiatives."
Third Quarter 2012 Financial and Operating Results
The following table provides selected financial information for the three month period ended June 30, 2012 compared to the quarter ended March 31, 2012 and to the same period in 2011.
Financial Highlights (In thousands)
| Three months ended | ||||
| June 30, 2012 | March 31, 2012 |
June 30, 2011 | ||
| AUM (in millions) | 53,915 | 28,691 | 30,060 | |
| Revenue | ||||
| Base management fees | 26,098 | 15,488 | 16,734 | |
| Performance fees | 159 | 43 | 844 | |
| 26,257 | 15,531 | 17,578 | ||
| Operating Expenses | 15,833 | 12,128 | 12,514 | |
| EBITDA | 10,424 | 3,403 | 5,064 | |
| Net Earnings (Loss) | (3,463) | (435) | 2,812 | |
| PER SHARE | ||||
| EBITDA | 0.18 | 0.09 | 0.14 | |
| Net earnings (Loss) | (0.06) | (0.01) | 0.08 | |
| Adjusted net earnings(1) | 0.13 | 0.07 | 0.12 | |
(1) Adjusted net earnings per share excludes non-recurring and non-cash items.
Financial and Operating Results
Revenues for the three-month period ended June 30, 2012 increased by $8.7 million or 49.4% to $26.3 million compared to $17.6 million for the same period in the prior year. The increase in revenues is mainly due to Natcan's acquisition. During the quarter, Fiera Capital won $1.8 billion in new AUM, of which the revenue stream will begin in the fourth quarter of 2012.
Operating expenses increased by $3.3 million or 26.5% to $15.8 million for the three-month period ended June 30, 2012, compared to $12.5 million for the same period in 2011. The increase resulted from an overall rise in SG&A expenses of $3.2 million combined with higher external manager expenses of $0.1 million for the three months ended June 30, 2012 following the Natcan acquisition.
For the quarter ended June 30, 2012, the Firm recorded a loss $3.5 million or $(0.06) (basic and fully diluted). For the three-month period ended June 30, 2011, the Firm earned $2.8 million or $0.08 (both basic and fully diluted). The net earnings were negatively impacted by $5.7 million or $0.10 per share of non-cash items and $4.8 million or $0.09 per share of non-recurring costs (net of income taxes) during the quarter. When added back to the firm's net loss of $3.5 million or (0.06) per share, the adjusted net earnings for the three-month period ended June 30, 2012 were $7.1 million or $0.13 (basic and fully diluted) earnings per share.
Mr. Desjardins continued "Our recent strategic acquisitions are in line with the Firm's plan to create a powerful platform for growth, significant revenue and earnings leverage. Our recent growth initiatives, including the opening of a new office and the launch of our activities in the United States, along with our entry into the institutional real estate market through Fiera Properites, are proceeding as planned.''
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 September 21, 2012 to shareholders of record at the close of business on August 27, 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, 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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