Ci financial reports record financial results for the fourth quarter of 2021
Toronto--(business wire)--ci financial corp. (“ci”) (tsx: cix, nyse: cixx) today released record financial results for the quarter ended december 31, 2021. “2021 was the most successful year in the history of ci in terms of financial performance and asset gathering,” said kurt macalpine, ci chief executive officer. “these outstanding results stem from the tremendous progress we have made in executing on our strategy and the successful transformation of the company. during the year, we added $6.6 billion of new client assets, excluding market moves and m&a. this was the result of robust growth in wealth management and our best asset management flows in six years. “in the u.s., we significantly expanded our wealth management business by completing the acquisitions of eight registered investment advisors and taking minority stakes in two alternative asset managers in the fourth quarter alone,” mr. macalpine said. “at $151 billion in assets, u.s. wealth management is now our largest business line. “in canada, our wealth management platform posted year-over-year asset growth of 20%, reaching $80.6 billion, while aum in our asset management segment grew by more than 11% due to strong investment performance and positive net sales. the significant turnaround in net sales stems from actions taken to modernize our asset management business, including integrating our boutique investment teams into a single global platform and introducing a broad range of innovative investment solutions.” operating and financial data highlights (in billions) for the three months ended for the year ended dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 core assets under management* 144.2 139.4 138.2 132.6 129.6 144.2 129.6 u.s. assets under management 7.9 7.2 6.6 5.9 5.5 7.9 5.5 total assets under management 152.1 146.6 144.8 138.5 135.1 152.1 135.1 core average assets under management* 143.0 141.1 135.9 131.6 126.2 137.9 124.1 total average assets under management 150.5 148.0 141.9 137.1 131.2 144.4 126.9 canadian wealth management 80.6 76.9 75.5 71.1 67.3 80.6 67.3 u.s. wealth management 151.3 97.0 83.8 31.0 29.2 151.3 29.2 total wealth management assets 232.0 173.8 159.3 102.1 96.5 232.0 96.5 total assets 384.1 320.4 304.0 240.6 231.5 384.1 231.5 total asset management net flows -- 0.8 0.4 (0.9) (2.1) 0.3 (8.8) * core assets represent canada and australia (in millions, except per share amounts) for the three months ended for the year ended (2021 amounts unaudited) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) net income 123.7 43.8 117.6 124.2 105.0 409.3 476.0 basic earnings per share 0.63 0.22 0.58 0.60 0.50 2.03 2.22 diluted earnings per share 0.62 0.22 0.57 0.59 0.50 2.02 2.21 ebitda 237.3 141.3 212.6 203.5 174.2 794.7 752.4 ebitda per share 1.21 0.71 1.05 0.98 0.83 3.94 3.51 cash flow from operating activities 163.7 182.5 130.1 189.7 77.3 665.9 542.0 adjusted net income1 171.0 159.2 153.0 151.6 148.7 634.8 528.7 adjusted basic earnings per share1 0.87 0.80 0.75 0.73 0.71 3.15 2.47 adjusted ebitda1 277.2 258.1 242.3 236.3 226.0 1,013.9 807.0 adjusted ebitda per share1 1.41 1.30 1.19 1.14 1.08 5.03 $3.77 free cash flow1 187.1 180.9 164.1 155.6 145.6 687.7 563.8 share repurchases 20.4 99.1 132.0 112.7 29.8 364.3 257.9 dividends paid per share 0.18 0.18 0.18 0.18 0.18 0.72 0.72 average basic shares outstanding 196.8 199.3 203.0 207.5 209.3 201.6 214.1 average diluted shares outstanding 198.4 202.3 205.5 209.3 211.1 202.5 215.6 long term debt (including current portion) 3,776 3,408 3,350 2,201 2,456 3,776 2,456 net debt1 3,453 2,655 2,461 1,856 1,872 3,453 1,872 net debt to adjusted ebitda1 3.14 2.59 2.53 1.94 2.08 3.14 2.08 1. free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted ebitda are not standardized earnings measures prescribed by ifrs. for further information, see “non-ifrs measures” note below. financial highlights total fourth quarter revenues grew by 15.3% as compared to the third quarter. excluding foreign currency exchange gains and losses and a gain on an investment during the fourth quarter, total revenue grew 6.8%, primarily driven by seasonal performance fees and distributions related to seed capital investments in certain funds, higher average core assets under management, as well as by recent acquisitions and higher client asset balances. total expenses in the fourth quarter decreased slightly from the third quarter. excluding adjustments related to changes in fair value for contingent consideration and amortization of intangible assets related to our acquisitions, legal and restructuring charges, and contingent consideration recorded as compensation, total expenses increased 3.5% primarily due to year-end incentive compensation adjustments and higher marketing and branding costs. net income grew to $123.7 million in the fourth quarter from $43.8 million in the third quarter. excluding the adjustments noted above, fourth quarter net income was $171.0 million, which increased 7.4% from $159.2 million in the third quarter. for the full year, revenues grew 33% to $2.7 billion, reflecting the impact of acquisitions, favorable market conditions and positive organic growth across the franchise. for the full year, expenses grew 52% to $2.1 billion, reflecting the impact of acquisitions as well as higher variable costs associated with higher asset levels. net income was $412.4 million in 2021 as compared to $475.5 million in 2020. adjusted net income (see non-ifrs measures) increased to $634.8 million from $528.7 million, primarily due to the impact of acquisitions and favorable market conditions. capital allocation in the fourth quarter of 2021, ci repurchased 0.8 million shares at a cost of $20.9 million, for an average cost of $26.21 per share, and paid $35.6 million in dividends at a rate of $0.18 per share. the board of directors declared a quarterly dividend of $0.18 per share, payable on july 15, 2022 to shareholders of record on june 30, 2022. the annual dividend rate of $0.72 per share represented a yield of 3.3% on ci’s closing share price of $21.80 on february 18, 2022. fourth quarter business highlights ci completed the acquisitions of eight registered investment advisors with combined assets of approximately $43.3 billion. they are all high-quality firms focused on high-net-worth and ultra-high-net-worth clients and include: budros, ruhlin & roe, inc., a columbus, ohio-based ria managing $4.4 billion in assets. cpwm, llc (doing business as columbia pacific wealth management), which manages $8.6 billion from its headquarters in seattle and an office in san francisco. gofen and glossberg, llc, a chicago-based ria with $9.7 billion in assets and a history dating back to 1932. matrix capital advisors, llc, of chicago, which oversees $0.9 billion in assets. mccutchen group llc, a seattle-based multi-family office managing $4.7 billion. odyssey wealth management, llc, an ria with $0.3 billion in assets acquired by ci affiliate rgt wealth advisors, llc of dallas. regentatlantic capital, llc, a $9.1-billion ria based in morristown, n.j. with an office in new york city. r.h. bluestein& co., which manages $5.6 billion from offices in birmingham, michigan and new yorkcity. budros, ruhlin & roe, inc., a columbus, ohio-based ria managing $4.4 billion in assets. cpwm, llc (doing business as columbia pacific wealth management), which manages $8.6 billion from its headquarters in seattle and an office in san francisco. gofen and glossberg, llc, a chicago-based ria with $9.7 billion in assets and a history dating back to 1932. matrix capital advisors, llc, of chicago, which oversees $0.9 billion in assets. mccutchen group llc, a seattle-based multi-family office managing $4.7 billion. odyssey wealth management, llc, an ria with $0.3 billion in assets acquired by ci affiliate rgt wealth advisors, llc of dallas. regentatlantic capital, llc, a $9.1-billion ria based in morristown, n.j. with an office in new york city. r.h. bluestein& co., which manages $5.6 billion from offices in birmingham, michigan and new yorkcity. ci acquired minority stakes in two alternative investment firms: columbia pacific advisors, llc of seattle, which manages approximately $4.8 billion in assets across a broad selection of institutional-caliber alternative strategies. glas funds, llc of cleveland, a leading tech-enabled platform providing investors with secure and streamlined digital access to alternative investments. it has $1.6 billion in combined assets under management and assets under contract. columbia pacific advisors, llc of seattle, which manages approximately $4.8 billion in assets across a broad selection of institutional-caliber alternative strategies. glas funds, llc of cleveland, a leading tech-enabled platform providing investors with secure and streamlined digital access to alternative investments. it has $1.6 billion in combined assets under management and assets under contract. ci global asset management (“ci gam”) investment funds received extensive industry recognition for investment excellence. ci gam received 13 refinitiv canada lipper fund awards and 38 fundgrade a+® awards. the fundgrade a+ winners included 16 mutual funds and exchange-traded funds and 22 segregated funds managed by the firm. the lipper and fundgrade a+ awards were announced in november and january, respectively. following quarter-end: effective january 1, ci established ci private wealth us, llc (“cipw”) to hold ci’s interests in its u.s. rias. cipw is structured as a partnership in which ci is majority owner and certain employees of cipw and its affiliates hold shares in the firm. this unique model aligns the interests of all partners and incentivizes them to collaborate, realize synergies, and drive the profitable growth of the firm as a whole. ci agreed to acquire corient capital partners, llc, a newport beach, california-based ria overseeing approximately $6.3 billion on behalf of ultra-high-net-worth individuals and families across the united states. ci agreed to acquire toronto-based northwood family office ltd., canada’s leading multi-family office. it manages and co-ordinates the integrated financial, investment and personal affairs of wealthy canadian and global families and oversees approximately $2.2 billion of investment assets. ci continued to build on its leadership position in digital assets in canada with the acquisition of a minority stake in newton crypto ltd., a crypto asset trading platform, and the launch of the ci galaxy multi-crypto etf (tsx: cmcx). analysts’ conference call ci will hold a conference call with analysts today at 10:00 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: 652352): canada toll-free: 1-833-950-0062 united states: 1-844-200-6205 united states (new york local): 1-646-904-5544. about ci financial ci financial corp. is an integrated global wealth and asset management company. ci’s primary asset management businesses are ci global asset management (ci investments inc.) and gsfm pty ltd., and it operates in canadian wealth management through ci assante wealth management (assante wealth management (canada) ltd.), ci private counsel lp, aligned capital partners inc., ci direct investing (wealthbar financial services inc.), and ci investment services inc. ci’s u.s. wealth management businesses consist of barrett asset management, llc, balasa dinverno foltz llc, brr opco, llc, bowling portfolio management llc, brightworth, llc, the cabana group, llc, cpwm, llc, congress wealth management llc, dowling & yahnke, llc, doyle wealth management, llc, gofen & glossberg, llc, matrix capital advisors, llc, mccutchen group llc, ocm capital partners, llc, portola partners group llc, radnor financial advisors, llc, regentatlantic capital, llc, the roosevelt investment group, llc, rgt wealth advisors, llc, r.h. bluestein & co., segall bryant & hamill, llc, stavis & cohen private wealth, llc, and surevest llc. ci is listed on the toronto stock exchange under cix and on the new york stock exchange under cixx. further information is available at www.cifinancial.com. 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 these forward-looking statements include that announced acquisitions will be completed, that the investment fund industry will remain stable and that interest rates will remain relatively stable. factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest and foreign exchange rates, global financial markets, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in ci’s disclosure materials filed with applicable securities regulatory authorities from time to time. 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. the refinitiv lipper fund awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. the refinitiv lipper fund awards are based on the lipper leader for consistent return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. the fund with the highest lipper leader for consistent return (effective return) value in each eligible classification wins the refinitiv lipper fund award. for more information, see lipperfundawards.com. although refinitiv lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by refinitiv lipper. fundgrade a+® is used with permission from fundata canada inc., all rights reserved. the annual fundgrade a+® awards are presented by fundata canada inc. to recognize the “best of the best” among canadian investment funds. the fundgrade a+® calculation is supplemental to the monthly fundgrade ratings and is calculated at the end of each calendar year. the fundgrade rating system evaluates funds based on their risk-adjusted performance, measured by sharpe ratio, sortino ratio, and information ratio. for more information, see www.fundgradeawards.com. although fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by fundata. ci financial corp. consolidated statement of operations (in millions, except per share amounts) (unaudited) for the three months ended for the year ended dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) management fees 464.9 460.9 441.1 425.1 415.9 1,792.1 1,635.8 administration fees 258.5 243.0 193.7 167.5 125.6 862.6 364.4 other revenues 39.5 (42.6) 27.6 47.8 26.8 72.3 52.6 total revenues 762.9 661.3 662.4 640.4 568.3 2,727.0 2,052.8 sg&a 203.9 192.5 165.6 140.2 116.7 702.3 449.4 trailer fees 142.5 142.0 136.4 130.8 129.4 551.7 509.4 advisor & dealer fees 112.8 110.9 99.3 101.5 87.0 424.5 253.4 deferred sales commissions 1.1 1.4 1.3 1.9 1.4 5.7 7.5 interest and lease finance 32.5 31.6 24.2 21.3 17.8 109.7 65.4 amortization and depreciation 29.1 26.8 21.4 19.6 13.9 96.8 43.5 other expenses 65.9 73.7 47.6 62.9 59.9 250.2 81.3 total expenses 587.8 578.9 495.9 478.3 426.1 2,140.9 1,410.0 income before income taxes 175.1 82.4 166.6 162.1 142.2 586.2 642.7 income taxes 51.3 37.0 48.2 37.4 36.6 173.8 167.2 non-controlling interest - 1.6 0.8 0.6 0.6 3.1 (0.4) net income attributable to shareholders 123.7 43.8 117.6 124.2 105.0 409.3 476.0 earnings per share – basic $0.63 $0.22 $0.58 $0.60 $0.50 $2.03 $2.22 earnings per share – diluted $0.62 $0.22 $0.57 $0.59 $0.50 $2.02 $2.21 average common shares outstanding - basic 196.8 199.3 203.0 207.5 209.3 201.6 214.1 average common shares outstanding - diluted 198.4 202.3 205.5 209.3 211.1 202.5 215.6 ci financial corp. consolidated balance sheet (in millions) (unaudited) december 31, 2021 2020 (unaudited) assets cash and short-term investments 230.8 483.6 client and trust funds on deposit 1,199.9 973.1 investments 131.8 133.4 accounts receivable and prepaid expenses 273.0 240.9 income taxes recoverable 3.6 7.7 total current assets 1,839.0 1,838.7 capital assets, net 52.6 47.0 right-of-use asset 142.6 50.6 intangibles 6,185.2 4,291.0 deferred income taxes 56.9 7.8 other assets 383.2 124.7 total assets 8,659.6 6,359.8 liabilities and shareholders' equity accounts payable and accrued liabilities 369.1 315.9 current portion of provisions and other financial liabilities 572.4 275.7 dividends payable 71.1 75.3 client and trust funds payable 1,202.1 961.1 income taxes payable 19.0 3.2 current portion of long-term debt 297.5 203.8 current portion of lease liabilities 20.2 14.9 total current liabilities 2,551.4 1,849.9 long-term debt 3,478.5 2,252.3 deferred income taxes 480.8 470.7 provisions and other financial liabilities 379.6 107.8 lease liabilities 153.5 61.3 total liabilities 7,043.9 4,742.1 equity share capital 1,810.2 1,868.0 contributed surplus 28.4 22.8 deficit (226.7) (287.6) accumulated other comprehensive income (23.3) (20.7) total equity attributable to the shareholders of the company 1,588.6 1,582.4 non-controlling interest 27.1 35.3 total equity 1,615.6 1,617.7 total liabilities and equity 8,659.6 6,359.8 ci financial corp. consolidated statement of cash flows (in millions) (unaudited) year ended december 31, 2021 2020 (unaudited) operating activities net income for the period 412.4 475.5 add (deduct) items not involving cash: realized and unrealized (gain) loss (20.6) (6.9) fair value change - acquisition liabilities 149.9 - contingent consideration recorded as compensation 7.2 - equity-based compensation 22.0 10.7 amortization and depreciation 96.8 43.5 deferred income taxes (42.4) (1.7) loss on repurchase of long-term debt 24.9 2.3 operating cash flow from continuing operations 650.2 523.4 net change in operating assets and liabilities 15.7 18.6 cash and cash equivalents provided by (used in) continuing operating activities 665.9 541.9 investing activities purchase of investments (5.1) (17.6) proceeds on sale of investments 15.4 23.6 additions to capital assets (7.8) (12.0) increase in other assets (167.4) (47.6) additions to intangibles (12.4) (17.1) cash paid to settle acquisition liabilities (290.0) - acquisitions, net of cash acquired (934.5) (527.3) cash used in investing activities (1,401.8) (598.1) financing activities repurchase of long-term debt (50.7) (56.0) repurchase of share capital (364.3) (257.9) payment of lease liabilities (16.7) (12.2) net distributions from non-controlling interest (3.1) 0.8 repayment of long-term debt (640.4) (569.0) issuance of long-term debt 1,704.8 1,471.0 dividends paid (146.5) (155.3) cash and cash equivalents provided by (used in) financing activities 483.1 421.4 net increase (decrease) in cash and cash equivalents during the period (252.8) 365.2 cash and cash equivalents, beginning of period 483.6 118.4 cash and cash equivalents, end of period 230.8 483.6 ci financial corp. segment results (in millions) (unaudited) asset management segment for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) management fees 469.6 465.6 445.5 429.2 419.6 1810.0 1,650.1 other revenues 20.5 (26.4 ) 8.2 24.7 0.8 26.9 (2.2 ) total revenues 490.1 439.2 453.7 453.9 420.5 1,836.9 1,647.8 sg&a 95.9 98.2 93.5 89.0 82.5 376.7 325.2 trailer fees 151.4 150.9 144.9 139.0 137.2 586.2 538.4 deferred sales commissions 1.2 1.5 1.4 2.0 1.5 6.1 8.0 amortization and depreciation 6.1 6.1 6.1 7.2 6.7 25.4 24.7 other expenses 26.9 5.9 27.5 30.4 52.7 90.6 69.2 total expenses 281.4 262.5 273.3 267.7 280.5 1,085.0 965.5 income before income taxes and non-segmented items 208.7 176.7 180.4 186.2 140.0 751.9 682.3 adjustments: non-controlling interest (0.2 ) (0.5 ) (0.2 ) - (0.4 ) (1.0 ) (0.9 ) amortization of acquisition related intangibles 0.6 0.6 0.6 0.5 0.5 2.3 2.0 fx (gains) and losses 1.4 19.0 (1.2 ) (8.2 ) 13.0 11.0 8.4 change in fair value of contingent consideration 14.2 1.9 10.0 - - 26.2 - write-down/(write-up) on investments (16.8 ) - - - 1.8 (16.8 ) 1.8 legal and restructuring charges 10.4 0.4 14.6 0.1 47.5 25.6 54.6 bond redemption costs - - 0.2 24.7 1.9 24.9 1.9 gain on equity investment - - (1.4 ) - - (1.4 ) - adjusted income before income taxes and non- segmented items 218.3 198.1 203.1 203.3 204.2 822.8 750.1 wealth management segment for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) administration fees 308.0 292.2 240.3 212.3 167.9 1,052.8 530.1 other revenues 19.0 (16.2 ) 19.4 23.1 26.0 45.3 54.8 total revenues 327.0 276.0 259.7 235.4 194.0 1,098.2 584.9 sg&a 112.8 99.1 76.7 55.4 38.0 344.0 138.8 advisor and dealer fees 153.1 151.0 137.3 137.8 121.4 579.2 389.3 amortization and depreciation 23.0 20.7 15.3 12.4 7.2 71.4 18.8 other expenses 39.0 67.9 20.1 32.5 7.3 159.5 12.2 total expenses 328.1 338.6 249.4 238.2 173.9 1,154.2 559.0 income (loss) before income taxes and non- segmented items (1.1 ) (62.6 ) 10.3 (2.8 ) 20.1 (56.0 ) 25.9 adjustments: non-controlling interest (0.9 ) (1.5 ) (0.5 ) (0.7 ) (0.4 ) (3.6 ) (0.1 ) amortization of acquisition related intangibles 18.1 16.2 11.4 9.4 4.6 55.1 9.9 fx (gains) and losses (4.5 ) 31.2 (7.0 ) (12.0 ) (15.2 ) 7.8 (15.8 ) change in fair value of contingent consideration 29.7 59.5 12.4 22.2 - 123.7 - write-down/(write-up) on investments - - - 7.1 - 7.1 - legal and restructuring charges 3.2 3.5 2.9 0.7 4.6 10.3 6.0 bond redemption costs - - - - - - - contingent consideration recorded as compensation 2.1 4.2 0.9 - - 7.2 - adjusted income before income taxes and non- segmented items 46.6 50.4 30.6 24.0 13.7 151.6 25.9 for the three months ended for the year ended (in billions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 assets under management, beginning 146.6 144.8 138.5 135.1 128.3 135.1 131.7 gross sales 5.8 5.7 6.8 6.2 4.9 24.5 18.3 redemptions 5.9 4.9 6.4 7.0 7.0 24.2 27.1 net sales -- 0.8 0.4 (0.9) (2.1) 0.3 (8.8) acquisitions (divestitures) 0.2 0.2 5.0 fund performance 5.5 1.0 5.7 4.3 8.9 16.5 7.1 assets under management, ending 152.1 146.6 144.8 138.5 135.1 152.1 135.1 average assets under management 150.5 148.0 141.9 137.1 131.2 144.4 126.9 core assets under management, ending 144.2 139.4 138.2 132.6 129.6 144.2 129.6 core average assets under management 143.0 141.1 135.9 131.6 126.2 137.9 124.1 asset management sales quarter ended december 31, 2021 quarter ended december 31, 2020 (in millions) gross sales redemptions net sales gross sales redemptions net sales canadian business retail 4,562 4,420 142 3,722 4,976 (1,255) institutional 385 716 (331) 302 1,226 (925) 4,947 5,136 (189) 4,023 6,203 (2,180) australian business retail 175 86 90 276 116 160 institutional 27 35 (8) 124 320 (197) 203 121 82 400 436 (36) u.s. 656 396 260 428 126 301 closed business 7 202 (195) 12 237 (226) total 5,813 5,855 (42) 4,863 7,003 (2,140) 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-gaap 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 contained in this press release include: adjusted net income and adjusted basic earnings per share ebitda, ebitda per basic share, adjusted ebitda, and adjusted ebitda per basic share free cash flow net debt. our adjusted net income, adjusted basic earnings per share, adjusted ebitda, adjusted ebitda per basic share and free cash flow excludes the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance: 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 classified as compensation per ifrs amortization of intangible assets change in fair value of contingent consideration related advisory fees contingent consideration classified as compensation per ifrs restructuring charges gains or losses in assets and investments costs related to issuing or retiring debt obligations. further explanations of these non-ifrs measures can be found in the “non-ifrs measures” section of management’s discussion and analysis dated november 11, 2021 available on sedar at www.sedar.com or at www.cifinancial.com. adjusted net income and eps for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) reported net income before non-controlling interest 123.9 45.4 118.4 124.8 105.7 412.5 475.5 amortization of acquisition related intangibles 18.7 16.8 12.0 9.9 5.2 57.4 12.0 fx (gains) and losses (3.1) 50.3 (8.2) (20.2) (2.2) 18.8 (7.5) change in fair value of acquisition liabilities 43.9 61.4 22.4 22.2 -- 149.9 -- legal and restructuring charges 13.6 3.9 17.5 0.8 52.1 35.9 60.6 write-down in assets (16.8) -- -- 7.1 1.8 (9.7) 1.8 bond redemption costs -- -- 0.2 24.7 1.9 24.9 1.9 gain on equity investment -- -- (1.4) -- -- (1.4) -- contingent consideration recorded as compensation 2.1 4.2 0.9 -- -- 7.2 -- total adjustments (pre-tax) 58.2 136.6 43.6 44.5 58.8 283.0 68.8 tax effect (recovery) (11.1) (21.2) (8.2) (17.0) (14.9) (57.5) (16.1) non-controlling interest -- 1.6 0.8 0.7 0.8 3.1 (0.4) adjusted net income 171.0 159.2 153.0 151.6 148.7 634.8 528.7 average common shares outstanding - basic 196.8 199.3 203.0 207.5 209.3 201.6 214.1 adjusted earnings per share – basic 0.87 0.80 0.75 0.73 0.71 3.15 2.47 ebitda for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) net income 123.7 45.4 118.4 124.8 105.7 412.4 475.5 add: interest & lease finance 32.5 31.6 24.2 21.3 17.8 109.6 65.4 provision for income taxes 51.3 37.0 48.2 37.4 36.6 173.8 167.2 amortization and depreciation 29.8 27.3 21.8 20.0 14.2 98.8 44.2 ebitda 237.3 141.3 212.6 203.5 174.2 794.7 752.4 average common shares outstanding - basic 196.8 199.3 203.0 207.5 209.3 201.6 214.1 ebitda per share 1.21 0.71 1.05 0.98 0.83 3.94 3.51 adjusted ebitda for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) ebitda 237.5 141.3 212.6 203.5 174.2 794.8 752.4 adjustments: fx (gains) and losses (3.1) 50.3 (8.2) (20.2) (2.2) 18.8 (7.5) change in fair value of acquisition liabilities 43.9 61.4 22.4 22.2 -- 149.9 -- legal & restructuring provision 13.6 3.9 17.5 0.8 52.1 35.9 60.6 write-downs (gains) in assets and investments (16.8) -- (1.4) 7.1 1.8 (11.1) 1.8 bond redemption costs -- -- 0.2 24.7 1.9 24.9 1.9 contingent consideration recorded as compensation 2.1 4.2 0.9 -- -- 7.2 -- less: non-controlling interest (0.2) 3.0 1.9 1.8 1.8 6.4 2.2 adjusted ebitda 277.2 258.1 242.3 236.3 226.0 1,013.9 807.0 average common shares outstanding - basic 196.8 199.3 203.0 207.5 209.3 201.6 214.1 adjusted ebtida per share 1.41 1.30 1.19 1.14 1.08 5.03 3.77 net debt for the three months ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 (unaudited) gross debt 3,776.0 3,408.4 3,350.2 2,200.9 2,456.1 less: cash and short-term investments 230.8 653.9 801.3 248.4 483.6 marketable securities 116.9 122.5 121.1 122.0 118.1 add: regulatory capital and non-controlling interest 25.0 23.1 33.4 25.9 18.0 net debt 3,453.4 2,655.1 2,461.2 1,856.4 1,872.4 adjusted ebitda 277.2 258.1 242.3 236.3 226.0 annualized 1,099.8 1,024.1 971.9 958.3 899.1 gross leverage (gross debt/annualized ebitda) 3.4x 3.3x 3.4x 2.3x 2.7x net leverage (net debt/annualized ebitda) 3.1x 2.6x 2.5x 1.9x 2.1x free cash flow for the three months ended for the year ended (in millions) dec. 31, 2021 sep. 30, 2021 jun. 30, 2021 mar. 31, 2021 dec. 31, 2020 dec. 31, 2021 dec. 31, 2020 (unaudited) (unaudited) cash provided by operating activities 163.7 182.5 130.1 189.7 77.3 665.9 542.0 net change in operating assets and liabilities 15.5 (47.3) 28.0 (11.9) 31.7 (15.7) (18.6) operating cash flow 179.2 135.3 158.1 177.8 108.9 650.2 523.4 adjustments: fx (gains) and losses (3.1) 50.3 (8.2) (20.2) (2.2) 18.8 (7.5) legal & restructuring charges 13.6 3.9 17.5 0.8 52.1 35.9 60.6 write-down (gain) in assets and investments -- -- -- 7.1 1.8 7.1 1.8 sub-total 10.5 54.2 9.4 (12.3) 51.7 61.8 54.9 tax effect (recovery) of adjustments (2.6) (5.9) (1.4) (8.3) (13.5) (18.1) (12.8) less: non-controlling interest -- 2.6 1.9 1.7 1.6 6.2 1.7 free cash flow 187.1 180.9 164.1 155.6 145.6 687.7 563.8
