IGM FINANCIAL REPORTS FIRST QUARTER EARNINGS
IGM FINANCIAL REPORTS FIRST QUARTER EARNINGS |
[02-May-2024] |
Readers are referred to the disclaimer regarding Forward-Looking Statements, Non-IFRS Financial Measures and Other Financial Measures at the end of this Release. WINNIPEG, MB, May 2, 2024 /CNW/ - IGM Financial Inc. (IGM or the Company) (TSX: IGM) today announced earnings results for the first quarter of 2024. IGM HIGHLIGHTS
"Strong client investment returns in the quarter and ongoing expense discipline contributed to a record first quarter adjusted net earnings result," said James O'Sullivan, President and Chief Executive Officer of IGM Financial Inc. "We were also very pleased with the noteworthy growth in AUA at China Asset Management Co., Ltd. and Wealthsimple. Our proportionate share of the quarterly growth in AUA was $14.0 billion and $2.0 billion, respectively." Net earnings available to common shareholders for the first quarter of 2024 were $223.4 million or $0.94 per share compared to $381.3 million or $1.60 per share in 2023. Adjusted net earnings available to common shareholders1 for the first quarter of 2024 were $224.5 million or $0.94 per share compared to $206.3 million or $0.87 per share in 2023. WEALTH MANAGEMENT Reflects the activities of its core business and strategic investments that are principally focused on providing financial planning and related services. This segment includes the activities of IG Wealth Management, the Company's investments in Rockefeller Capital Management (Rockefeller) and Wealthsimple Financial Corp. (Wealthsimple), and, until the fourth quarter of 2023, Investment Planning Counsel (IPC) which was classified as discontinued operations. Adjusted net earnings available to common shareholders in the first quarter of 2024 were $111.2 million, an increase of 4.4% compared to the first quarter of 2023, and represented 49.5% of IGM's adjusted net earnings available to common shareholders. Assets under advisement including strategic investments at March 31, 2024 were $175.5 billion, an increase of 7.8% from $162.8 billion at December 31, 2023 and an increase of 44.2% from $121.6 billion at March 31, 2023. IG Wealth Management Assets under advisement at March 31, 2024 were $128.0 billion, an increase of 5.6% from $121.2 billion at December 31, 2023 and an increase of 10.5% from $115.9 billion at March 31, 2023. Quarterly net client inflows were $46 million,3 compared to net client inflows of $504 million in the first quarter of 2023. Quarterly gross client inflows were $3.7 billion, an increase of 1.0% from 2023. Wealthsimple The fair value of the Company's investment in Wealthsimple was $722 million at March 31, 2024 compared to $607 million at December 31, 2023. Wealthsimple's AUA increased in the quarter from $31.0 billion at December 31, 2023 to $38.7 billion at March 31, 2024, an increase of 24.8%. The increase in fair value is consistent with the increase in public market peer valuations, as well as Wealthsimple's business performance and revised revenue expectations. ASSET MANAGEMENT Reflects the activities of its core business and strategic investments primarily focused on providing investment management services. This segment includes the operations of Mackenzie Investments and the Company's investments in China Asset Management Co., Ltd. (ChinaAMC) and Northleaf Capital Group Ltd. (Northleaf). Adjusted net earnings available to common shareholders in the first quarter of 2024 were $86.8 million, an increase of 12.1% compared to the first quarter of 2023, and represented 38.7% of IGM's adjusted net earnings available to common shareholders. Assets under management including strategic investments at March 31, 2024 were $327.4 billion, an increase of 7.3% from $305.1 billion at December 31, 2023 and an increase of 7.6% from $304.4 billion at March 31, 2023. Mackenzie Investments Total assets under management were $203.7 billion, an increase of 4.1% from $195.7 billion at December 31, 2023 and an increase of 5.1% from $193.8 billion at March 31, 2023. Third party assets under management were $124.2 billion at March 31, 2024, an increase of 4.4% from December 31, 2023 and an increase of 6.1% from March 31, 2023. Investment fund net redemptions were $194 million3 compared to net sales of $72 million in the first quarter of 2023. Mutual fund gross sales were $2.4 billion, up 3.0% from the first quarter of 2023. ETF business – ETF assets under management totalled $13.8 billion at March 31, 2024, up from $12.9 billion at December 31, 2023 and $12.8 billion at March 31, 2023. Excluding investment in ETFs by IGM's managed products, ETF assets under management were $6.1 billion at March 31, 2024, compared to $5.5 billion at December 31, 2023 and $5.1 billion at March 31, 2023. ChinaAMC The Company's proportionate share of ChinaAMC's first quarter earnings was $26.9 million compared to $28.1 million in the first quarter of 2023. CORPORATE AND OTHER Represents the investments in Great-West Lifeco Inc. (Lifeco) and Portage Ventures LPs, as well as unallocated capital. Lifeco – The Company's proportionate share of Lifeco's first quarter earnings was $22.8 million4 compared to $20.6 million in the first quarter of 2023. The Company's proportionate share of Lifeco's base earnings was $23.9 million compared to $20.4 million in the first quarter of 2023. DIVIDENDS The Board of Directors has declared a dividend of 56.25 cents per share on the Company's common shares which is payable on July 31, 2024 to shareholders of record on June 28, 2024.
FORWARD-LOOKING STATEMENTS Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial Inc.'s (IGM Financial, IGM or the Company) and, where applicable, its subsidiaries' and strategic investments', current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's, and its subsidiaries and strategic investments, financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, and its subsidiaries and strategic investments, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of material factors, many of which are beyond the Company's and its subsidiaries' and strategic investments' control, affect the operations, performance and results of the Company and its subsidiaries and strategic investments, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, outbreaks of disease or pandemics (such as COVID-19), the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's and its subsidiaries' and strategic investments' success in anticipating and managing the foregoing factors. The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements. Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedarplus.ca. NON-IFRS FINANCIAL MEASURES AND OTHER FINANCIAL MEASURES This report contains Non-IFRS financial measures and non-IFRS ratios that do not have standard meanings prescribed by IFRS and may not be directly comparable to similar measures used by other companies. These measures and ratios are used to provide management, investors and investment analysts with additional measures to assess earnings performance. Non-IFRS financial measures include, but are not limited to, "adjusted net earnings available to common shareholders", "adjusted net earnings", "adjusted earnings before income taxes", "adjusted earnings before interest and taxes" (Adjusted EBIT), "earnings before interest, taxes, depreciation and amortization before sales commissions" (EBITDA before sales commissions), and "earnings before interest, taxes, depreciation and amortization after sales commissions" (EBITDA after sales commissions). These measures exclude other items which are items of a non-recurring nature, or that could make the period-over-period comparison of results from operations less meaningful. Effective in the first quarter of 2024, these measures also exclude the Company's proportionate share of items that Great-West Lifeco Inc. (Lifeco) excludes from its IFRS reported net earnings in arriving at Lifeco's base earnings. Base earnings is an alternate measure Lifeco uses to understand the underlying business performance compared to IFRS net earnings. Lifeco's financial information can be obtained in its disclosure materials filed on www.sedarplus.ca. Comparative periods have been restated to reflect this change. EBITDA before sales commissions excludes all sales commissions. EBITDA after sales commissions includes all sales commissions and highlights aggregate cash flows. Non-IFRS ratios include the following:
Refer to the appropriate reconciliations of non-IFRS financial measures, including as components of non-IFRS ratios, to reported results in accordance with IFRS included in IGM Financial Inc.'s most recent Management's Discussion and Analysis. This report also contains other financial measures which include:
FIRST QUARTER WEBCAST AND CONFERENCE CALL IGM Financial Inc.'s First Quarter 2024 results conference call and webcast will be held on Friday, May 3, 2024 at 8:00 a.m. ET. The webcast and conference call can be accessed respectively through igmfinancial.com/en or you may register to obtain a calendar booking with your dial in numbers, PIN and webcast links. Alternatively, dial 1-844-763-8274 or +1-647-484-8814. The most recent Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) of operating results are available on IGM Financial Inc.'s website at igmfinancial.com/en. ABOUT IGM FINANCIAL INC. IGM Financial Inc. is one of Canada's leading diversified wealth and asset management companies with approximately $252 billion in total assets under management and advisement at March 31, 2024. The company provides a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals. Its activities are carried out principally through IG Wealth Management and Mackenzie Investments. IGM Financial is a member of the Power Corporation group of companies.
SOURCE IGM Financial Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:IGM |