Cymbria (CYB) Q3 2024 earnings summary

Executive summary

• Cymbria achieved strong investment performance in Q3 2024, with Class A adjusted NAV (aNAV) up 8.1% and shareholders' equity rising 6.7% year-over-year to $1,665 million, driven by both public and private equity holdings.

• The portfolio benefited from mid-cap outperformance and successful investments in companies like Berry Global, Blend Labs, and Norfolk Southern, while Dollar Tree detracted from results.

• EdgePoint Wealth Management, Cymbria's largest private holding, was revalued up 16% to $295.7 million, reflecting business growth and a lower discount rate.

• Two new businesses were added and one was exited during the quarter, reflecting ongoing portfolio optimization.

Financial highlights

• Q3 2024 net income was $114.1 million, up from $4.0 million in Q3 2023, with total income of $142.3 million and expenses of $5.7 million.

• For the nine months ended September 30, 2024, net income was $161.3 million, up from $93.1 million in the prior year period.

• Adjusted NAV per share as of September 30, 2024: $78.38 (Class A), $88.07 (Class J); shareholders' equity per share: $73.79 (Class A), $82.91 (Class J).

• Cash and cash equivalents decreased by $62.5 million year-to-date, mainly due to $57.0 million used for share repurchases under the LRO.

• Management fees for the nine months were $9.0 million, up from $7.9 million in 2023, reflecting higher aNAV.

Outlook and guidance

• Management remains focused on long-term value creation, emphasizing a bottom-up investment approach and continued share repurchases when shares trade at a discount to aNAV.

• The portfolio is positioned to benefit from overlooked mid-cap opportunities and ongoing growth in private holdings.