Stock Name: FSZ
Amount: CAD 0.08
Announcement Date: 13/08/2012
Record Date: 23/08/2012
Dividend Detail:
MONTREAL, Aug. 13, 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 third
quarter ended June 30, 2012 ("the third quarter").
Financial and Operating Highlights
For the three months ended June 30, 2012:
With assets under management of $53.9 billion, Fiera Capital becomes the
fourth largest independent asset manager in Canada following the
acquisition of Natcan on April 2, 2012.
Coincident with the Natcan acquisition, the Firm changed its name to
Fiera Capital Corporation.
AUM increased by $25.2B to $53.9B from the previous quarter ended March
31, 2012 and by $23.9B compared to the quarter ended June 30, 2011.
Revenue rose by $10.7 million to $26.3 million compared to the quarter
ended March 31, 2012 and by $8.7 million from the quarter ended June
30, 2011.
EBITDA improved by $7.0 million to $10.4 million from the quarter ended
March 31, 2012 and by 5.4 million from the quarter ended June 30, 2011.
The Firm recorded a net loss of $0.06 per share compared to a net loss
of $0.01 per share for the quarter ended March 31, 2012 and net
earnings per share of $0.08 for the quarter ended June 30, 2011.
Adjusted net earnings for the period were $7.1 million or $0.13 (basic
and fully diluted) earnings per share.�� The adjusted net earnings for
the three-month period ended March 31, 2012 and June 30, 2011 were
respectively $2.6 million or $0.07 (basic and fully diluted) earnings
per share and $4.3 million or $0.12 (basic and fully diluted) earnings
per share.
During the quarter, the Firm won $1.8 billion in new assets under
management.�� Income streams from the new AUM will begin in the fourth
quarter of 2012.
The Firm took advantage of favourable market conditions and entered into
derivative financial instruments which consist of exchanging a variable
rate for a fixed rate of 1.835 % ending in March��2017. The variation in
the fair value of the derivative financial instruments that was
recorded as expenses amounted to�� $2.3 millionfor the quarter ended
June 30, 2012.
Primarily as a result of the Natcan acquisition, which was partially
paid for by the issue of 19.732 million Class A shares, fully diluted
Class A and Class B shares outstanding increased to 56,569,578 shares
compared to 36,575,630 Class A and Class B shares outstanding at June
30, 2011.
"Natcan's investment and servicing activities have been fully integrated
into the operations of Fiera during the quarter, and we are now
operating as a firm with a single focus - our clients," said Jean-Guy
Desjardins, Chairman CEO and CIO of Fiera Capital. "In the process, we
achieved most of the anticipated synergies.�� But most importantly, both
teams are working together to better serve our clients, and more than
ever, we believe that the Firm's larger resources put us in an
outstanding position to offer our clients the best investment solutions
and to continue to invest in a number of growth initiatives."
Third Quarter 2012 Financial and Operating Results
The following table provides selected financial information for the
three month period ended June 30, 2012 compared to the quarter ended
March 31, 2012 and to the same period in 2011.
Financial Highlights (In thousands)
�� | �� | Three months ended | �� | |
June 30, 2012 | March 31, 2012 | June 30, 2011 | ||
AUM (in millions) | 53,915 | 28,691 | 30,060 | |
Revenue | �� | �� | �� | |
�� | Base management fees | 26,098 | 15,488 | 16,734 |
�� | Performance fees | 159 | 43 | 844 |
�� | 26,257 | 15,531 | 17,578 | |
Operating Expenses | 15,833 | 12,128 | 12,514 | |
EBITDA | 10,424 | 3,403 | 5,064 | |
Net Earnings (Loss) | (3,463) | (435) | 2,812 | |
�� | �� | �� | �� | |
PER SHARE | �� | �� | �� | |
�� | EBITDA | 0.18 | 0.09 | 0.14 |
�� | Net earnings (Loss) | (0.06) | (0.01) | 0.08 |
�� | Adjusted net earnings(1) | 0.13 | 0.07 | 0.12 |
(1) Adjusted net earnings per share excludes non-recurring and non-cash
items.
Financial and Operating Results
Revenues for the three-month period ended June 30, 2012 increased by
$8.7 million or 49.4% to $26.3��million compared to $17.6 million for
the same period in the prior year. The increase in revenues is mainly
due to Natcan's acquisition. During the quarter, Fiera Capital won $1.8
billion in new AUM, of which the revenue stream will begin in the
fourth quarter of 2012.
Operating expenses increased by $3.3 million or 26.5% to $15.8 million
for the three-month period ended June 30, 2012, compared to $12.5
million for the same period in 2011. The increase resulted from an
overall rise in SG&A expenses of $3.2 million combined with higher
external manager expenses of $0.1��million for the three months ended
June 30, 2012 following the Natcan acquisition.
For the quarter ended June 30, 2012, the Firm recorded a loss $3.5
million or $(0.06) (basic and fully diluted). For the three-month
period ended June 30, 2011, the Firm earned $2.8 million or $0.08 (both
basic and fully diluted).�� The net earnings were negatively impacted by
$5.7 million or $0.10 per share of non-cash items and $4.8 million or
$0.09 per share of non-recurring costs (net of income taxes) during the
quarter.�� When added back to the firm's net loss of $3.5 million or
(0.06) per share, the adjusted net earnings for the three-month period
ended June 30, 2012 were $7.1 million or $0.13 (basic and fully
diluted) earnings per share.
Mr. Desjardins continued "Our recent strategic acquisitions are in line
with the Firm's plan to create a powerful platform for growth,
significant revenue and earnings leverage.�� Our recent growth
initiatives, including the opening of a new office and the launch of
our activities in the United States, along with our entry into the
institutional real estate market through Fiera Properites, are
proceeding as planned.''
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 September 21, 2012 to shareholders of record at the close of
business on August 27, 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
��
SOURCE: FIERA CAPITAL CORPORATION
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.
