CI Financial Corp T.CIX

Alternate Symbol(s): CIXXF

Financial Services Asset Management

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. The Company is engaged in the management and distribution of a range of financial products and services, including wealth management, insurance, and others. The Company operates through three segments: Asset Management, Canadian Wealth Management, and U.S. Wealth Management. The Asset Management segment includes CI Global Asset Management, which operates in Canada, and GSFM Pty Ltd., which operates in Australia. The Canadian Wealth Management segment includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, Northwood Family Office, CI Direct Investing and CI Investment Services. The U.S. Wealth Management segment includes Corient Private Wealth LLC, an integrated wealth management company providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.

TSX:CIX - Post by User

CI Financial Corp

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon May 13, 2021 2:24pm

77 Views

Post# 33195962

TD

CI Financial Corp.

(CIX-T) C$20.23

Earnings Beat and Improving Net Flows

Event

Q1/21 Results

Impact: POSITIVE

CI delivered an adjusted EPS beat on the back of better-than-expected contributions from the asset management segment while wealth management was in-line. Expenses were also higher than expected but not enough to offset solid revenue growth.

Adj. EPS of $0.73 was higher than our $0.65 estimate (consensus was $0.66). Asset management (AM) contribution was stronger than expected due to performance fees earned while wealth management (WM) was in-line. Excluding performance fees, we estimate adjusted EPS of $0.67, still ahead of us. Consolidated EBITDA of $238mm was also better than our $219mm estimate.
Asset Management EBITDA (margin) of $208mm (45.0%) was above our forecast of $195mm (46.2%). CI earned $12.6mm in performance fees which drove the beat. The management fee rate was in-line with our estimates (stable q/q).
Wealth management EBITDA was $24.0mm, in-line with our $23.8mm estimate. This implies a $96mm run-rate annualized.
Net flows in the quarter improved to -$0.9bln (vs. -$2.1bln q/q and - $2.7bln y/y). This was pre-released with CI's March 2021 AUM update. This includes institutional outflows ($0.4bln), Canadian retail outflows ($0.6bln), offset somewhat by U.S. retail AUM inflows ($0.3bln). Core AUM of $132.6bln was +2% q/q. Preliminary April net flows of -$0.2bln, continuing on an improving trend.
Ending AUA of C$108bln was +6% q/q. Canadian wealth assets are C$71bln (+6% q/q), and U.S. AUA/AUM of C$31bln is up from C$29.2bln q/q.
Free cash flow reported was $156mm; compares to $146mm q/q and $145mm y/y. CI bought back 6.6mm of shares in the quarter for $113mm. Net debt/EBITDA improved slightly to 2.0x, down from 2.1x q/q (we were forecasting 2.1x).
The conference call is today (May 13) at 9 am. 1-800-437-2398 (passcode: 2096170) or here.