Adjusted EPS: Increased 8% sequentially to $0.97.
Adjusted EBITDA per Share: Grew 10% from Q2 to $1.85 per share.
Free Cash Flow: Reached a record of $1.32 per share.
M&A Spending: $164 million deployed towards mergers and acquisitions.
Share Repurchases: Completed a 5 million shares substantial issuer bid and bought back 680,000 shares.
Dividend Payout: $30 million returned to shareholders.
Global Assets: Increased 6% to $518 billion.
Adjusted Net Income: $141 million or $0.97 per share.
Adjusted EBITDA: Increased to $271 million with a margin of 42%.
Asset Management EBITDA: Increased to $172 million with a margin of 62.3%.
Canada Wealth EBITDA: Increased to $19 million with a margin of 8.4%.
US Pre-NCI EBITDA: Increased to $123.7 million with a margin of 44%.
Revenue: Increased to $755 million for the quarter.
Net Debt: Increased to $3.6 billion.
Net Leverage: Declined to 3.3 times on a reported basis.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
CI Financial Corp (CIXXF) reported record adjusted EPS of $0.97, an 8% sequential increase, driven by top-line growth and controlled SG&A expenses.
Adjusted EBITDA per share increased by 10% from Q2 to a record $1.85, with free cash flow also reaching a record of $1.32 per share.
The company completed significant M&A activities, adding over $10 billion in client assets through acquisitions, contributing to an 8% sequential increase in adjusted EBITDA for the segment.
CI Financial Corp (CIXXF) was recognized with 16 Lipper awards, marking the second consecutive year as the most awarded fund manager in Canada.
The US wealth management segment achieved a record EBITDA margin of 44%, reflecting successful integration and consolidation efforts.
Higher interest costs partially offset the benefits of top-line growth and controlled SG&A expenses.
Interest expenses are expected to increase to $59-$60 million in Q4, impacting future financial performance.
The company faces ongoing integration challenges, particularly in real estate and technology, which may affect future margin expansion.
Net debt increased to $3.6 billion, reflecting new bond issuances, which could impact financial flexibility.
The Australian business is considered non-core and contributes minimally to the overall asset base, raising questions about its strategic importance.
Q: Can you discuss the remaining steps for integrating the US wealth segment and potential for further margin expansion? A: Kurt MacAlpine, CEO: The main areas left are real estate and technology integrations, specifically unifying our portfolio accounting solution by 2025. We expect continued margin expansion due to positive operating leverage even after these integrations.
