CI Financial (CIX) Q2 2024 earnings summary

Executive summary

• Achieved record adjusted EPS of $0.90 and record diluted EPS of $1.15 for Q2 2024, with adjusted EBITDA per share of $1.68 and adjusted EBITDA attributable to shareholders of $253.2 million.

• Net income attributable to shareholders was $176.4 million, reversing a net loss in Q1 2024 and up from $51.0 million in Q2 2023.

• Total assets under management and client assets reached $489 billion, up 20% year-over-year, and surpassed $500 billion in July.

• U.S. Wealth Management (Corient) posted double-digit adjusted EBITDA growth, driven by acquisitions and successful integration.

• Completed acquisitions of multiple U.S. wealth management firms, adding over $13.8 billion in assets during Q2 and further $8.1 billion post-quarter.

Financial highlights

• Total net revenue for Q2 2024 was $986 million, up from $776.1 million in Q2 2023 and $645.7 million in Q1 2024.

• Adjusted EBITDA was $293.4 million, up from $272.3 million in Q2 2023; adjusted EBITDA margin was 40.1%.

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

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

• Gain of $281.3 million recorded from the repurchase of long-term debt.

Outlook and guidance

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

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

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