TSX Symbol: CIX
TORONTO, Aug. 8, 2013 /CNW/ - CI Financial Corp. ("CI") today released
unaudited financial results for the quarter ended June 30, 2013.
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HIGHLIGHTS
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Quarter ended
June 30, 2013
($millions except
per share amounts)
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Quarter ended
March 31, 2013
($millions except
per share amounts)
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% change
|
Quarter ended
June 30, 2012
($millions except
per share amounts)
|
% change
|
|
Assets Under Management
|
81,650
|
80,471
|
1
|
71,559
|
14
|
|
Average Assets Under Management
|
81,691
|
78,810
|
4
|
71,385
|
14
|
|
Pre-Tax Operating Earnings Per Share1 |
0.62
|
0.59
|
5
|
0.55
|
13
|
|
EBITDA Per Share 1 |
0.67
|
0.64
|
5
|
0.61
|
10
|
|
Adjusted Net Income2 |
104.0
|
98.5
|
6
|
90.1
|
15
|
|
Earnings Per Share
|
0.37
|
0.35
|
6
|
0.25
|
48
|
|
Adjusted Earnings Per Share2 |
0.37
|
0.35
|
6
|
0.32
|
16
|
|
SG&A Expenses
|
38 bps
|
39 bps
|
(3)
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40 bps
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(5)
|
|
Dividends Recorded Per Share
|
0.265
|
0.250
|
6
|
0.240
|
10
|
|
Net Debt3 |
447.9
|
503.6
|
(11)
|
614.2
|
(27)
|
|
Gross Sales
|
3,377
|
3,804
|
(11)
|
2,010
|
68
|
|
Net Sales
|
978
|
1,147
|
(15)
|
(270)
|
n/a
|
|
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1 Pre-Tax Operating Earnings and EBITDA (earnings before interest, taxes,
depreciation and amortization) are not standardized earnings measures
prescribed by IFRS; however, management believes that most of its
shareholders, creditors, other stakeholders and investment analysts
prefer to include the use of these performance measures in analyzing
CI's results. CI defines pre-tax operating earnings as income before
income taxes less redemption fee revenue, non-recurring items,
performance fees and investment gains, plus amortization of deferred
sales commissions (DSC) and fund contracts. CI's method of calculating
these measures may not be comparable to similar measures presented by
other companies.
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2 Adjusted for a non-recurring tax charge in the quarter ended June 30,
2012.
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3Net of cash and marketable securities not required for regulatory
working capital.
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For the quarter ended June 30, 2013, average assets under management
reached a record high of $81.7 billion, an increase of 14% from the
same quarter of the previous year and an increase of 4% from the prior
quarter. CI had a record level of second quarter gross sales and its
highest level of second quarter net sales since 2000. Gross sales of
funds were $3.4 billion during the quarter, an increase of 68% year
over year, while net sales increased to $978 million from net
redemptions of $270 million in the same quarter one year ago.
At June 30, 2013, CI also reached a record level of assets under
management for a quarter-end at $81.6 billion, up 14% from $71.6
billion at June 30, 2012. In comparison, the S&P/TSX Composite Index
increased 8% and the DEX Universe Bond Index was unchanged over the
same period.
For the second quarter of 2013, CI reported earnings per share of $0.37,
up 48% from $0.25 per share in the second quarter of 2012 and up 6%
from $0.35 per share in the first quarter of 2013. The second quarter
of 2012 included a non-recurring tax charge. Adjusting for this charge,
earnings per share increased 16% year over year. In addition, CI
reported EBITDA per share for the second quarter of 2013 of $0.67, a
10% increase from the second quarter of 2012 and a 5% increase from the
prior quarter. Pre-tax operating earnings per share were up 13% from
the second quarter of 2012 and up 5% from the prior quarter.
"The quarter was excellent on many counts," said Stephen A. MacPhail, CI
President and Chief Executive Officer. "Strong positive returns for our
fund investors, expanded support from a broad base of advisors and
continued investment in training, new products and money management
expertise resulted in CI achieving record high asset levels and the
best net inflows in over a decade."
CI maintained its discretionary spend below the rate of growth in assets
under management. Selling, general and administrative (SG&A) expenses
as a percentage of average assets under management were 0.38% in the
second quarter of 2013, down from 0.40% in the second quarter of the
prior year.
CI generated $114.2 million in free cash flow during the quarter ended
June 30, 2013 compared to $104.7 million in the second quarter of 2012.
CI's cash flow facilitated a reduction in net debt by $55.7 million and
the payment of $73.7 million in dividends. As at July 31, 2013, CI had
283,762,131 shares outstanding.
The Board of Directors declared monthly cash dividends of $0.09 per
share payable on each of September 13, October 15 and November 15, 2013
to shareholders of record on August 31, September 30 and October 31,
2013, respectively. The monthly dividend represents a yield of 3.4% on
CI's closing share price of $31.59 on August 7, 2013.
For detailed financial statements for the quarter ended June 30, 2013,
including Management's Discussion and Analysis, please refer to CI's
website at www.cifinancial.com under Reports, or contact investorrelations@ci.com.
Analysts' Conference Call
CI will hold a conference call with analysts today at 4 p.m. Eastern
time. Speaking on the call will be Mr. MacPhail and Douglas Jamieson,
Executive Vice-President and Chief Financial Officer. The conference
call and a slide presentation will be accessible through a webcast at
www.ci.com/q2. Alternatively, investors may listen to the discussion by
dialling 1-866-696-5910 (passcode: 9533678).
The call will be available for playback later in the day until August
22, 2013 at 1-800-408-3053 (passcode: 9921688). The webcast will be
archived at www.ci.com/q2.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth
management company. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds,
and is on the Web at www.cifinancial.com.
This press release contains forward-looking statements with respect to
CI and its products and services, including its business operations and
strategy and financial performance and condition. Although management
believes that the expectations reflected in such forward-looking
statements are reasonable, such statements involve risks and
uncertainties. Actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from expectations
include, among other things, general economic and market factors,
including interest rates, business competition, changes in government
regulations or in tax laws, and other factors discussed in materials
filed with applicable securities regulatory authorities from time to
time.
SOURCE: CI Financial Corp.
Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.
(416) 364-1145