CI Financial (CIX) Q2 2024 earnings summary

Executive summary

• Achieved record adjusted EPS of $0.90 and reported EPS of $1.15, with adjusted EBITDA per share of $1.68 and total assets surpassing $500 billion in July.

• U.S. Wealth Management (Corient) posted double-digit adjusted EBITDA growth, supported by four RIA acquisitions adding $13.8 billion in assets.

• Free cash flow per share was $1.01, and operating cash flow per share was $1.17.

• Deployed $224 million toward M&A, retired over $630 million (C$862 million) in bonds, and repurchased nearly 10 million shares.

• Celebrated 30th anniversary and launched new ETFs, including an AI-focused fund.

Financial highlights

• Adjusted net income reached $136 million, with adjusted EBITDA of $253 million and a 40.1% margin.

• Total net revenues were $986 million, up from $645.7 million in Q1 2024; adjusted net revenues rose 4.7% to $731 million.

• Revenues increased 4% year-over-year to $757 million; expenses rose 8% due to compensation, marketing, and integration costs.

• Net leverage remained at 3.5x; debt stable at $3.5 billion.

• Dividend declared at $0.20 per share, with $30 million paid in Q2.

Outlook and guidance

• Interest and lease finance expenses expected at $59–60 million in Q3, with depreciation/amortization at $18–21 million per quarter.

• Non-controlling interest for U.S. segment modeled at 37% of adjusted EBITDA for EBITDA calculations and 30% for EPS.

• Canada’s remaining U.S. M&A obligations to be fully satisfied by early January 2025.

• Management expects continued growth in assets and profitability, supported by organic growth and selective M&A.