TSX Symbol: CIX
TORONTO, Feb. 13, 2014 /CNW/ - CI Financial Corp. ("CI") today released
audited financial results for the quarter and year ended December 31,
2013.
|
HIGHLIGHTS1
|
Quarter ended
December 31, 2013
($millions except
per share amounts)
|
Quarter ended
September 30, 2013
($millions except
per share amounts)
|
%
change
|
Quarter ended
December 31, 2012
($millions except
per share amounts)
|
%
change
|
|
Assets Under Management
|
91,090
|
85,557
|
6
|
75,723
|
20
|
|
Average Assets Under Management
|
88,558
|
84,125
|
5
|
74,323
|
19
|
|
Pre-Tax Operating Earnings Per Share2
|
0.68
|
0.64
|
6
|
0.58
|
17
|
|
EBITDA Per Share 2
|
0.72
|
0.68
|
6
|
0.63
|
14
|
|
Net Income
|
116.2
|
107.8
|
8
|
95.0
|
22
|
|
Earnings Per Share
|
0.41
|
0.38
|
8
|
0.34
|
21
|
|
SG&A Expenses3
|
37 bps
|
37 bps
|
0
|
39 bps
|
(5)
|
|
Dividends Recorded Per Share
|
0.280
|
0.270
|
4
|
0.240
|
17
|
|
Net Debt4
|
315.3
|
403.7
|
(22)
|
526.5
|
(40)
|
|
Gross Sales
|
3,516
|
3,160
|
11
|
3,513
|
0
|
|
Net Sales
|
707
|
853
|
(17)
|
724
|
(2)
|
|
HIGHLIGHTS
|
Year ended
December 31, 2013
($millions except
per share amounts)
|
Year ended
December 31, 2012
($millions except
per share amounts)
|
% change
|
|
Average Assets Under Management
|
83,325
|
72,606
|
15
|
|
Pre-Tax Operating Earnings Per Share1
|
2.52
|
2.26
|
12
|
|
EBITDA Per Share 2
|
2.71
|
2.48
|
9
|
|
Net Income
|
426.4
|
352.2
|
21
|
|
Earnings Per Share
|
1.50
|
1.24
|
21
|
|
Adjusted Earnings Per Share5
|
1.50
|
1.31
|
15
|
|
SG&A Expenses
|
38 bps
|
39 bps
|
(3)
|
|
Free Cash Flow
|
456.2
|
423.9
|
8
|
|
Dividends Recorded Per Share
|
1.065
|
0.955
|
12
|
|
Gross Sales
|
13,858
|
10,597
|
31
|
|
Net Sales
|
3,686
|
973
|
279
|
|
1
|
All figures are net of non-controlling interest.
|
|
2
|
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.
|
|
3
|
As a percentage of assets under management.
|
|
4
|
Net of cash and marketable securities not required for regulatory
working capital.
|
|
5
|
Adjusted for an $18.8 million non-cash tax adjustment in 2012.
|
For the year ended December 31, 2013, average assets under management
were $83.3 billion, an increase of 15% from the previous year. In 2013,
CI experienced the highest level of total annual gross and net sales in
over a decade. Gross sales of funds were $13.9 billion compared to
$10.6 billion for the year ended December 31, 2012. CI's net sales
increased 279% year over year to $3.7 billion in fiscal 2013. Positive
sales momentum continued through to the fourth quarter of 2013, when CI
experienced the highest level of gross and net retail sales in any
fourth quarter of the last decade. Retail sales in the fourth quarter
of 2013 were nearly four times higher than the same quarter the prior
year.
At December 31, 2013, CI reached a record level of assets under
management for a quarter-end at $91.1 billion, up 20% from $75.7
billion at December 31, 2012. In comparison, the S&P/TSX Composite
Index increased 13% and the DEX Universe Bond Index lost 1% over the
same period.
For the fourth quarter of 2013, CI reported earnings per share of $0.41,
up 21% from $0.34 per share in the fourth quarter of 2012 and up 8%
from $0.38 per share in the third quarter of 2013. CI reported EBITDA
per share for the fourth quarter of 2013 of $0.72, a 14% increase from
the fourth quarter of 2012 and a 6% increase from the prior quarter.
Pre-tax operating earnings per share were up 17% from the fourth
quarter of 2012 and up 6% from the prior quarter.
CI maintained its change in 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 fell to 37
basis points in the fourth quarter of 2013, down from 39 basis points
in the fourth quarter of the prior year.
CI generated $456.2 million in free cash flow during the year ended
December 31, 2013 compared to $423.9 million in 2012. CI's cash flow
facilitated a reduction in net debt by $211.2 million and the payment
of $297.7 million in dividends. As at January 31, 2014, CI had
284,680,002 shares outstanding.
"2013 was one of CI's best years for investment performance, asset
growth and sales," said Stephen A. MacPhail, CI President and Chief
Executive Officer. "We have taken advantage of this success to continue
to invest significantly in investment management and all service
elements of our business. This year has seen a continuation of strong
sales and asset growth with CI's assets under management now $92.6
billion, up 5% from the average for the fourth quarter of 2013."
The Board of Directors declared a monthly cash dividend of $0.095 per
share payable on each of March 14, April 15, and May 15, 2014 to
shareholders of record on February 28, March 31and April 30, 2014,
respectively. The monthly dividend represents a yield of 3.2% on CI's
closing share price of $35.60 on February 12, 2014.
For detailed financial statements for the quarter ended December 31,
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/q4. Alternatively, investors may listen to the discussion by
dialling 1-866-696-5910 or (416) 340-2217 (passcode: 9243090).
The call will be available for playback later in the day until February
27, 2014 at (905) 694-9451 or 1-800-408-3053 (passcode: 3704742). The
webcast will be archived at www.ci.com/q4.
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