Stock Name: FSZ
Amount: CAD 0.08
Announcement Date: 11/05/2012
Record Date: 22/05/2012
Dividend Detail:
MONTREAL, May 11, 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 second
quarter ended March 31, 2012 ("the second quarter").
Financial and Operating Highlights
AUM closed at $28.7B compared to $28.9B for the quarter ended December
31, 2011 and compared to $29.5B for the quarter ended March 31, 2011
Revenue declined by $0.6 million to $15.5 million from the quarter ended
December 31, 2011 and by $2.4 million from the quarter ended March 31,
2011
EBITDA remained stable at $3.4 million compared to the quarter ended
December 31, 2011 and decreased by $0.9 million from the quarter ended
March 31, 2011
Net earnings before non-recurring items remained stable at $0.04 per
share compared to the quarter ending December 31, 2011 and $0.08 per
share for the quarter ending March 31, 2011
The Firm recorded a net loss of $0.01 per share compared to net earnings
of $0.02 per share for the quarter ended December 31, 2011 and $0.05
for the quarter ended March 31, 2011
Subsequent to the end of the quarter, Fiera Capital closed two strategic
transactions:
Fiera acquired the business of Natcan Investment Management for $309.5
million, subject to reduction.�� The acquisition results in Fiera
Capital becoming the fourth largest independent asset manager in
Canada, with assets under management of approximately $54 billion.
Fiera Properties acquired Roycom Inc., providing the Firm with a highly
experienced and successful operating platform in the institutional real
estate management market.
"The acquisition of Natcan creates a powerful platform for growth and
adds significant revenue and earnings leverage for Fiera Capital," said
Jean-Guy Desjardins, Chairman,C.E.O and C.I.O. "In addition to our
enhanced distribution capacity, we have already identified all of the
expected synergies from combining the two organizations and our focus
will be on completing the integration.�� Our investment and servicing
teams are working effectively together to service our clients and
maintain our highly ranked investment performance."
Second Quarter 2012 Financial and Operating Results
The following table provides selected financial information for the
three month period ended March 31, 2012 compared to the quarter ended
December 31, 2011 and to last year same period.
Financial Highlights (In thousands)
�� | �� | |||||
�� | 3 months ended | |||||
March 31, 2012 | �� | December 31, 2011 | March 31, 2011 | |||
�� | �� | |||||
AUM (in millions) | 28,691 | �� | 28,920 | �� | 29,452 | |
Revenue | �� | �� | �� | �� | �� | |
�� | Base management fees | 15,489 | �� | 15,246 | �� | 16,921 |
�� | Performance fees | 43 | �� | 885 | �� | 1,015 |
�� | 15,532 | �� | 16,131 | �� | 17,936 | |
Operating Expenses | 12,130 | �� | 12,720 | �� | 13,626 | |
EBITDA | 3,402 | �� | 3,411 | �� | 4,310 | |
Adjusted EBITDA | 3,357 | �� | 2,638 | �� | 3,980 | |
Net Earnings (Loss) | (434) | �� | 829 | �� | 1,898 | |
Adjusted EBITDA per share | 0.09 | �� | 0.07 | �� | 0.11 | |
Earnings (Loss) per share | (0.01) | �� | 0.02 | �� | 0.05 | |
Earnings per share (excluding non-recurring items) | 0.04 | �� | 0.04 | �� | 0.08 | |
Financial and Operating Results
Revenues for the three-month period ended March 31, 2012 decreased by
$2.4 million or 13.4% to $15.5��million compared to $17.9 million for
the comparable period in prior year. The decrease in revenue is due
mainly to lower performance fees, the non-repatriation of certain
externally managed international equity mandates, the departure of
certain private wealth servicers and lower AUM in the Retail sector.
These factors were offset by an increase in net revenues due to market
appreciation, and new mandates from existing and new clients.
Operating expenses decreased by $1.5 million or 11% to $12.1 million for
the three-month period ended March��31, 2012, compared to $13.6 million
for the same period in 2011. The improvement resulted from an overall
reduction in SG&A expenses and lower external manager expenses due to
the repatriation of the management of international equity mandates
from external sub-advisors, in line with the firm's plans.
Adjusted earnings before interest, taxes, depreciation and amortization
(a non-IFRS measure of performance) decreased by $0.6 million or 15.7%
to $3.4 million for the three-month period ended March 31, 2012, from
$4.0 million for the same period of 2011. EBITDA margin remained stable
at 22%.�� (Adjusted EBITDA eliminates the effect of performance fees on
EBITDA).
For the quarter ended March 31, 2012, the Firm recorded a loss of $0.4
million or $0.01 per share (both basic and fully diluted). For the
three-month period ended March 31, 2011, the Firm earned $1.9 million
or $0.05 per share (both basic and fully diluted).�� The net earnings
were impacted by $2.6 million ($1.8 million net of income taxes) of
non-recurring costs related to the Natcan transaction or a $0.05 (basic
and fully diluted) per share impact. Excluding these expenses, net
earnings for the current quarter would have been $1.4 million or $0.04
(basic and fully diluted) earnings per share.
Mr. Desjardins continued "We are also pleased to welcome the team from
Roycom Inc. into the Fiera Properties family.�� The new entity will
create a new national real estate investment platform that will be
focused on providing clients with pooled fund and segregated account,
real estate management services and builds on our reputation as a
leading manager of alternative investments in Canada.
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 June 21, 2012 to shareholders of record at the close of
business on May 24, 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
For further information:
M��lanie 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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