Readers are referred to the sections entitled "Non-IFRS Financial
Measures" and "Forward-Looking Statements" at the end of this release.
MONTREAL, May 15, 2014 /CNW Telbec/ - Power Corporation of Canada (TSX:
POW) today reported earnings results for the three months ended March
31, 2014.
FIRST QUARTER RESULTS
Operating earnings attributable to participating shareholders (a
non-IFRS financial measure) for the quarter ended March 31, 2014 were
$224 million or $0.49 per share, compared with $247 million or $0.54
per share in 2013.
Other items, not included in operating earnings, were a contribution of
$18 million, representing the Corporation's share of the gain realized
by Groupe Bruxelles Lambert (GBL) on the sale of a part of its interest
in Total SA (Total). In 2013, other items represented a net charge of
$22 million. Additional details on other items can be found in the
table entitled "Other Items" below.
Net earnings attributable to participating shareholders were
$242 million or $0.53 per share, compared with $225 million or $0.49
per share in 2013.
RESULTS OF POWER FINANCIAL CORPORATION
Power Financial reported operating earnings attributable to common
shareholders for the quarter ended March 31, 2014 of $440 million or
$0.62 per share, compared with $407 million or $0.57 per share in 2013.
Other items, not included in operating earnings, resulted in a
contribution of $27 million, representing Power Financial's share of
the gain on the sale by GBL of Total shares as discussed above,
compared with a net charge of $13 million in 2013.
Net earnings attributable to common shareholders were $467 million or
$0.66 per share, compared with $394 million or $0.55 per share in the
first quarter of 2013.
At March 31, 2014, Power Corporation held a 65.8% economic interest in
Power Financial. Power Financial's contribution to Power Corporation's
operating earnings was $290 million for the quarter ended March 31,
2014, compared with $268 million in 2013.
DIVIDENDS ON NON-PARTICIPATING PREFERRED SHARES
The Board of Directors today declared quarterly dividends on the
Corporation's preferred shares, as follows:
SERIES - STOCK SYMBOL
|
RECORD DATE
|
PAYMENT DATE
|
AMOUNT
|
1986 Series - POW.PR.F
|
June 23, 2014
|
July 15, 2014
|
At a floating rate equal to one quarter of
70% of the average prime rate of two
major Canadian chartered banks [1]
|
Series A - POW.PR.A
|
June 23, 2014
|
July 15, 2014
|
35¢
|
Series B - POW.PR.B
|
June 23, 2014
|
July 15, 2014
|
33.4375¢
|
Series C - POW.PR.C
|
June 23, 2014
|
July 15, 2014
|
36.25¢
|
Series D - POW.PR.D
|
June 23, 2014
|
July 15, 2014
|
31.25¢
|
Series G - POW.PR.G
|
June 23, 2014
|
July 15, 2014
|
35¢
|
[1] In accordance with the articles of the Corporation
DIVIDENDS ON PARTICIPATING SHARES
The Board of Directors also declared a quarterly dividend of 29 cents
per share on the Participating Preferred Shares and the Subordinate
Voting Shares of the Corporation, payable June 30, 2014 to shareholders
of record June 9, 2014.
For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above
dividends on the Corporation's preferred shares (including the
Participating Preferred Shares) and Subordinate Voting Shares are
eligible dividends.
ABOUT POWER CORPORATION
Power Corporation of Canada is a diversified international management
and holding company with interests in companies in the financial
services, communications and other business sectors in North America,
Europe and Asia. To learn more, visit www.powercorporation.com.
EARNINGS SUMMARY
|
|
(unaudited)
|
(in millions of Canadian dollars, except per share amounts)
|
|
Three months ended
|
|
|
March 31,
2014
|
|
March 31,
2013
|
Contribution to operating earnings from:
|
|
|
|
|
|
Power Financial
|
|
290
|
|
268
|
|
Other subsidiaries
|
|
(21)
|
|
(9)
|
|
|
269
|
|
259
|
Results from corporate activities
|
|
|
|
|
|
Income from investments
|
|
(1)
|
|
31
|
|
Operating and other expenses
|
|
(31)
|
|
(30)
|
Dividends on non-participating shares
|
|
(13)
|
|
(13)
|
Operating earnings attributable to participating shareholders
|
|
224
|
|
247
|
Other items (see below)
|
|
|
|
|
|
Power Financial
|
|
18
|
|
(9)
|
|
Other subsidiaries
|
|
-
|
|
(13)
|
|
|
18
|
|
(22)
|
Net earnings attributable to participating shareholders
|
|
242
|
|
225
|
Earnings per share (attributable to participating shareholders)
|
|
|
|
|
|
- operating earnings
|
|
0.49
|
|
0.54
|
|
- non-operating earnings
|
|
0.04
|
|
(0.05)
|
|
- net earnings
|
|
0.53
|
|
0.49
|
OTHER ITEMS
|
|
(unaudited)
|
(in millions of Canadian dollars)
|
Three months ended
|
|
March 31,
2014
|
|
March 31,
2013
|
Power Financial:
|
|
|
|
|
Pargesa
|
18
|
|
(9)
|
|
18
|
|
(9)
|
Restructuring charges at Square Victoria
|
|
|
|
|
Communications Group Inc.
|
-
|
|
(13)
|
|
18
|
|
(22)
|
Non-IFRS Financial Measures
In analyzing the financial results of the Corporation and consistent
with the presentation in previous years, net earnings attributable to
participating shareholders are classified as follows:
-
operating earnings attributable to participating shareholders; and
-
other items or non-operating earnings, which include the after-tax
impact of any item that management considers to be of a non-recurring
nature or that could make the period-over-period comparison of results
from operations less meaningful, and also include the Corporation's
share of any such item presented in a comparable manner by its
subsidiaries and its jointly controlled corporations and associates.
Management uses these financial measures in its presentation and
analysis of the financial performance of Power Corporation, and
believes that they provide additional meaningful information to readers
in their analysis of the results of the Corporation. Operating
earnings, as defined by the Corporation, assist the reader in comparing
the current period's results to those of previous periods as items of a
non-recurring nature are not included in this non-IFRS measure.
Operating earnings attributable to participating shareholders and
operating earnings per share are non-IFRS financial measures that do
not have a standard meaning and may not be comparable to similar
measures used by other entities.
The Corporation also uses a non-consolidated basis of presentation to
present and explain its results, financial position and cash flows.
This non-consolidated basis, which is a non-IFRS presentation, is
useful as it isolates the parent's corporate activities from those of
operating subsidiaries, reflecting their respective contributions.
Forward-Looking Statements
Certain statements in this News Release, other than statements of
historical fact, are forward-looking statements based on certain
assumptions and reflect the Corporation's current expectations, or with
respect to disclosure regarding the Corporation's public subsidiaries,
reflect such subsidiaries' disclosed current expectations.
Forward-looking statements are provided for the purposes of assisting
the reader in understanding the Corporation's financial performance,
financial position and cash flows 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 and the reader is
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
Corporation and its subsidiaries, 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".
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 factors, many of which are beyond the
Corporation's and its subsidiaries' control, affect the operations,
performance and results of the Corporation and its subsidiaries 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, business competition, operational
and reputational risks, technological change, changes in government
regulation and legislation, changes in tax laws, unexpected judicial or
regulatory proceedings, catastrophic events, the Corporation's and its
subsidiaries' ability to complete strategic transactions, integrate
acquisitions and implement other growth strategies, and the
Corporation's and its subsidiaries' success in anticipating and
managing the foregoing factors.
The reader is cautioned to consider these and other factors,
uncertainties and potential events carefully and not to put undue
reliance on forward-looking statements. Information contained in
forward-looking statements is based upon certain material assumptions
that were applied in drawing a conclusion or making a forecast or
projection, including management's perceptions of historical trends,
current conditions and expected future developments, as well as other
considerations that are believed to be appropriate in the
circumstances, including that the list of factors in the previous
paragraph, collectively, are not expected to have a material impact on
the Corporation and its subsidiaries. While the Corporation considers
these assumptions to be reasonable based on information currently
available to management, they may prove to be incorrect.
Other than as specifically required by applicable Canadian law, the
Corporation undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement is 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
Corporation's business and material factors or assumptions on which
information contained in forward-looking statements is based is
provided in its disclosure materials, including its most recent
Management's Discussion and Analysis and Annual Information Form, filed
with the securities regulatory authorities in Canada and available at www.sedar.com.
SOURCE Power Corporation of Canada
Mr. Stéphane Lemay
Vice-President, General Counsel and Secretary
514-286-7400