Company Announcements

• Diluted EPS of $(0.19), record adjusted diluted EPS ¹ of $0.97
• EBITDA of $124.8 million, record adjusted EBITDA attributable to shareholders ¹ of $270.5 million
• EBITDA per share of $0.85 and record adjusted EBITDA attributable to shareholders¹ per share of $1.85
• Operating cash flow of $166.3 million, free cash flow¹ of $192.3 million
• Operating cash flow per share of $1.13, record free cash flow per share of $1.32
• Record total assets of $518.1 billion, up $97.1 billion or 23.1% year over year
• Paid $30.3 million in dividends at $0.20 per share
• Repurchased over 7.1 million shares under substantial issuer bids completed in July and October
• Corient acquired two U.S. wealth management firms with combined assets of approximately $8.1 billion

All financial amounts in Canadian dollars as at September 30, 2024, unless stated otherwise.

TORONTO--(BUSINESS WIRE)--Nov. 14, 2024-- CI Financial Corp. (“CI”) (TSX: CIX) today released financial results for the quarter ended September 30, 2024.

“Our momentum continued in the third quarter, with CI producing record results on key measures,” said Kurt MacAlpine, CI Chief Executive Officer. “Total assets grew by 6% over the quarter to a new high of $518.1 billion, while adjusted diluted earnings per share at $0.97 and adjusted EBITDA attributable to shareholders per share at $1.85 were also at record levels.¹

“Our efforts in controlling expenses resulted in adjusted selling, general and administrative costs remaining flat relative to the previous quarter while adjusted net revenues were up 3.2%.¹ Our overall results demonstrate the operating leverage inherent in our business model,” Mr. MacAlpine said.

“Our Canadian retail asset management business had modest positive net sales this quarter, a marked improvement from the previous three quarters. The investment team at CI Global Asset Management continued to deliver, with more than 70% of assets under management outperforming peer funds over the three and five years ending September 30, 2024. Our performance was also recognized through 16 LSEG Lipper Fund Awards for 2024, making this the second year a row we’ve earned an industry-leading number of Lipper awards.

“As part of modernizing our asset management, CI GAM continues to be very active in enhancing its product lineup,” Mr. MacAlpine said. “During the quarter, we launched a number of ETFs and mutual funds into areas of strong demand, including covered calls and fixed income, and made a number of changes to our private markets funds that will allow for increased investor access to these leading mandates.

“Our U.S. wealth management business continues to produce strong results, with quarter-over-quarter growth in adjusted EBITDA¹ of 7.9%,” Mr. MacAlpine said. “This performance reflects the success of the strategy that has made Corient one of the leading fee-only private wealth firms in the United States. This includes selective acquisitions of high-quality registered investment advisor firms and, as previously announced, we completed two acquisitions during the third quarter, adding approximately US$6 billion in assets.

“Our recent capital allocation activities also included the July restart of our normal course issuer bid and a substantial issuer bid completed in October, bringing the total number of shares repurchased this year to approximately 12.7 million,” Mr. MacAlpine said. "In addition, we completed open market repurchases of our 2051 notes, retiring $15.8 million of principal at a significant discount to par."

Operating and financial data highlights

1. Free cash flow, net debt, adjusted net income, adjusted earnings per share, adjusted diluted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see “Non-IFRS Measures” note below.
   
   
2. Includes $36.0 billion, $34.7 billion, $34.4 billion, $33.2 billion and $31.8 billion of assets managed by CI and held by clients of advisors with CI Assante Wealth Management, CI Private Counsel (CIPC) and Aligned Capital Partners as at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
   
   
3. Includes $27.5 billion, $25.6 billion, $24.5 billion, $21.5 billion and $19.7 billion of assets advised by CI and held by clients of advisors with Assante, CIPC, CI Direct Investing and Aligned Capital as at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023 and September 30, 2023, respectively.
   
   
4. Month-end USD/CAD exchange rates of 1.3524, 1.3680, 1.3546, 1.3250 and 1.3582 for September 2024, June 2024, March 2024, December 2023 and September 2023, respectively.
   
   
5. Includes 100% of flows from CI’s minority investments in Columbia Pacific Advisors, OCM Capital Partners, The Cabana Group and GLASfunds Holdings.

Financial highlights

Third quarter net loss attributable to shareholders was $27.6 million compared to a net profit of $176.4 million in the second quarter of 2024. Excluding non-operating items, adjusted net income attributable to shareholders¹ was $141.2 million in the third quarter, up 4.2% from the previous quarter.

Third quarter total net revenues were $785.4 million, down from $986.0 million in the second quarter of 2024. Excluding non-operating items, adjusted total net revenues¹ were $754.9 million, up 3.3% from $731.3 million due to higher revenues from all three segments. Included in revenues was a $7.0 million performance fee CI earned in its asset management segment.

Third quarter total expenses increased 3.1% to $778.1 million from $754.7 million in the second quarter of 2024. Excluding non-operating items, adjusted total expenses¹ were $513.2 million, up 1.0% from $507.9 million in the previous quarter, primarily due to higher interest expense as well as increased advisor and dealer fees.

Capital allocation

In the third quarter of 2024, CI paid $30.3 million in dividends at a rate of $0.20 per share. The annual dividend rate of $0.80 per share represented a yield of 3.4% on CI’s closing share price of $23.63 on November 13, 2024. The Board of Directors of CI declared a quarterly dividend of $0.20 per share, payable on April 15, 2025 to shareholders of record as of March 31, 2025.

Under a substantial issuer bid which expired on July 8, 2024, CI purchased for cancellation five million common shares at a purchase price of $15.50 per share, for an aggregate price of approximately $77.5 million. In August, CI commenced a subsequent substantial issuer bid, which expired after quarter-end on October 3, 2024. Under that offer, CI purchased for cancellation 2,157,201 common shares at a purchase price of $18.25 per share, for an aggregate price of approximately $39.4 million.

Under its Normal Course Issuer Bid and Automatic Securities Purchase Plan, which were renewed in July, CI repurchased 680,800 shares during the quarter at a cost of $10.9 million, for an average cost of $16.05 per share.

In September, CI announced a debenture offering with a principal amount of $325 million maturing on September 20, 2027.

Third quarter business highlights

• Corient completed the acquisitions of two firms with a focus on providing comprehensive wealth management services to ultra-high-net-worth clients and combined assets at the time of acquisition of approximately $8.1 billion (US$5.9 billion). The firms were Emerald Multi-Family Office (EMFO, LLC) of Weston, Florida, and Byron Financial, LLC of Charlotte, North Carolina, which are now operating under the Corient brand.
• CI GAM product enhancements included changes to its private markets funds to broaden their appeal, including removing the lock-up period and allowing eligibility for registered plans.
• CI GAM also introduced new investment solutions in key market segments, including:
  • Three covered call mandates: CI Multi-Sector Covered Call Fund, CI U.S. Aggregate Bond Covered Fund and CI U.S. Aggregate Bond Covered ETF
  • Additional options for fixed-income investors: An ETF series of CI Global Unconstrained Bond Fund (TSX: CUBD) and mutual fund and ETF series of CI Global Short-Term Bond Fund (Cboe: CGSB)
  • An expansion of its popular “Quality Dividend Growth” suite with the launch of CI Global Quality Dividend Growth ETF (TSX: CGQD.B) and CI Global Quality Dividend Growth Fund.

Following quarter-end:

• CI GAM investment funds received 16 LSEG Lipper Fund Awards for Canada for 2024. The awards recognize mutual funds and ETFs that have provided consistently strong risk-adjusted performance, relative to peers. This was the second consecutive year that CI GAM received more individual fund awards than any other company.
• CI GAM also launched a suite of six asset allocation mutual funds, which invest in units of the respective versions of the CI Asset Allocation ETFs.

Analysts’ conference call

CI will hold a conference call with analysts today at 9:00 a.m. EST, led by Mr. MacAlpine and Chief Financial Officer Amit Muni. A live webcast of the call and slide presentation can be accessed here or through the Investor Relations section of CI’s website.

Alternatively, investors may listen to the discussion through the following numbers (access code: 014135):

• Canada (toll-free): 1-833-950-0062
• United States (local): 1-404-975-4839
• United States (toll-free): 1-833-470-1428.

A recording of the webcast will be archived on CI’s Investor Relations site.

About CI Financial

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite. CI operates in three segments:

• Asset Management, which includes CI Global Asset Management, which operates in Canada, and GSFM, which operates in Australia.
• Canadian Wealth Management, operating as CI Wealth, which includes CI Assante Wealth Management, Aligned Capital Partners, CI Assante Private Client, CI Private Wealth, Northwood Family Office, CI Coriel Capital, CI Direct Investing, CI Direct Trading and CI Investment Services.
• U.S. Wealth Management, which includes Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.

CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn page.

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in the forward-looking statements include that asset levels will remain stable. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.

This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.

CI Global Asset Management is a registered business name of CI Investments Inc., a wholly owned subsidiary of CI.

NON-IFRS MEASURES

In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include:

• Adjusted net income and adjusted basic and diluted earnings per share
• Adjusted EBITDA and adjusted EBITDA margin
• Free cash flow
• Net debt.

These non-IFRS measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation:

• gains or losses related to foreign currency fluctuations on our cash balances
• costs related to our acquisitions including:
  • amortization of intangible assets
  • change in fair value of contingent consideration
  • related advisory fees
  • contingent consideration and consideration for strategic recruitment classified as compensation per IFRS
• restructuring charges
• legal provisions for a class action related to time zone arbitrage
• certain gains or losses in assets and investments
• costs related to issuing or retiring debt obligations
• expenses associated with Corient and CIPW redeemable units.

Further explanations of these Non-IFRS measures can be found in the “Non-IFRS Measures” section of Management’s Discussion and Analysis dated November 14, 2024 available on SEDAR at www.sedar.com or at www.cifinancial.com.