All figures are in Canadian dollars unless otherwise noted. Readers are
referred to the sections entitled "Non-IFRS Financial Measures" and
"Forward-Looking Statements" at the end of this release.
TORONTO, Nov. 14, 2014 /CNW Telbec/ - Power Corporation of Canada (TSX:
POW) today reported earnings results for the third quarter and nine
months ended September 30, 2014.
THIRD QUARTER RESULTS
Operating earnings (a non-IFRS financial measure) and net earnings
attributable to participating shareholders for the quarter ended
September 30, 2014 were $350 million or $0.76 per share. In the
corresponding period of 2013, operating earnings attributable to
participating shareholders were $234 million or $0.51 per share and net
earnings attributable to participating shareholders were $206 million
or $0.45 per share.
NINE-MONTH RESULTS
Operating earnings attributable to participating shareholders for the
nine months ended September 30, 2014 were $898 million or $1.95 per
share, compared with $741 million or $1.61 per share in 2013.
Other items, not included in operating earnings, were a contribution of
$8 million comprised of the Corporation's share of the gains realized
by Groupe Bruxelles Lambert (GBL) on the sale of part of its interest
in Total SA (Total) and on the exchange of Suez Environnement Company
(Suez Environnement) shares as further described below, partially
offset by restructuring and other charges at IGM Financial Inc. (IGM)
and Square Victoria Communications Group Inc. In the corresponding
period of 2013, other items represented a net charge of $64 million.
Additional details can be found in the table entitled "Other Items"
below.
Net earnings attributable to participating shareholders were $906
million or $1.97 per share, compared with $677 million or $1.47 per
share in 2013.
RESULTS OF POWER FINANCIAL CORPORATION
THIRD QUARTER RESULTS
Power Financial reported operating and net earnings attributable to
common shareholders for the quarter ended September 30, 2014 of $595
million or $0.83 per share, compared with $434 million or $0.61 per
share in 2013.
NINE-MONTH RESULTS
For the nine months ended September 30, 2014, operating earnings
attributable to common shareholders were $1,580 million or $2.22 per
share, compared with $1,305 million or $1.83 per share in 2013.
Other items, not included in operating earnings, were a contribution of
$50 million and consisted of Power Financial's share of the gains
realized by GBL on the sale of a part of its interest in Total and on
the exchange of Suez Environnement shares(1), partially offset by restructuring and other charges at IGM. In the
corresponding period of 2013, other items represented a net charge of
$2 million.
Net earnings attributable to common shareholders were $1,630 million or
$2.29 per share, compared with $1,303 million or $1.83 per share in
2013.
At September 30, 2014, Power Corporation held a 65.7% economic interest
in Power Financial. Power Financial's contribution to Power
Corporation's operating earnings was $391 million for the quarter ended
September 30, 2014, compared with $285 million in 2013. For the nine
months ended September 30, 2014, Power Financial contributed $1,039
million to Power Corporation's operating earnings, compared with $859
million in 2013.
(1) As reported in the second quarter of 2014, holders of Suez
Environnement exchangeable bonds exercised their right to exchange
approximately 85% of the bonds outstanding for shares of Suez
Environnement. Pargesa Holding SA (Pargesa) share of the gain recorded
by GBL on this exchange was SF129 million, of which SF55 million
(representing the reversal of the accumulated mark-to-market
adjustments on options related to Suez Environnement) was recorded as
operating earnings. The remaining portion of SF74 million, which
represents the economic gain measured at the exchange price set at the
time of the issuance of the exchangeable bonds in 2012, has been
recognized as non-operating earnings.
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
|
December 24, 2014
|
January 15, 2015
|
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
|
December 24, 2014
|
January 15, 2015
|
35¢
|
Series B - POW.PR.B
|
December 24, 2014
|
January 15, 2015
|
33.4375¢
|
Series C - POW.PR.C
|
December 24, 2014
|
January 15, 2015
|
36.25¢
|
Series D - POW.PR.D
|
December 24, 2014
|
January 15, 2015
|
31.25¢
|
Series G - POW.PR.G
|
December 24, 2014
|
January 15, 2015
|
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 December 31, 2014 to
shareholders of record December 10, 2014.
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
|
|
Nine months ended
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Contribution to operating earnings from:
|
|
|
|
|
|
|
|
|
Power Financial
|
391
|
|
285
|
|
1,039
|
|
859
|
|
Other subsidiaries (1)
|
(16)
|
|
(18)
|
|
(50)
|
|
(44)
|
|
375
|
|
267
|
|
989
|
|
815
|
Results from corporate activities
|
|
|
|
|
|
|
|
|
Income from investments
|
21
|
|
11
|
|
43
|
|
56
|
|
Operating and other expenses
|
(33)
|
|
(31)
|
|
(95)
|
|
(91)
|
Dividends on non-participating shares
|
(13)
|
|
(13)
|
|
(39)
|
|
(39)
|
Operating earnings attributable to participating shareholders
|
350
|
|
234
|
|
898
|
|
741
|
Other items (see below)
|
-
|
|
(28)
|
|
8
|
|
(64)
|
Net earnings attributable to participating shareholders
|
350
|
|
206
|
|
906
|
|
677
|
Earnings per share attributable to participating shareholders
|
|
|
|
|
|
|
|
|
Operating earnings
|
0.76
|
|
0.51
|
|
1.95
|
|
1.61
|
|
Non-operating earnings
|
-
|
|
(0.06)
|
|
0.02
|
|
(0.14)
|
|
Net earnings
|
0.76
|
|
0.45
|
|
1.97
|
|
1.47
|
(1) Comprising Square Victoria Communications Group Inc., Sagard SAS and
Power Energy Corporation.
OTHER ITEMS
|
|
|
|
|
|
|
|
|
(unaudited)
(in millions of Canadian dollars)
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
|
Share of Power Financial's other items:
|
|
|
|
|
|
|
|
|
|
IGM
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges
|
|
|
|
|
(5)
|
|
|
|
|
Pargesa
|
|
|
|
|
|
|
|
|
|
|
Gain on partial disposal of Total
|
1
|
|
|
|
29
|
|
|
|
|
|
Gain on partial exchange of Suez Environnement
|
|
|
|
|
11
|
|
|
|
|
|
Impairment charges on GDF Suez
|
|
|
|
|
|
|
(9)
|
|
|
|
Gain on partial disposal of GDF Suez
|
|
|
|
|
|
|
7
|
|
|
|
Other (charge) income
|
(1)
|
|
|
|
(2)
|
|
|
|
|
-
|
|
-
|
|
33
|
|
(2)
|
|
Impairment and other charges at Square Victoria Communications Group
Inc.
|
|
|
(28)
|
|
(25)
|
|
(41)
|
|
Impairment charge on CITIC Limited
|
|
|
|
|
|
|
(21)
|
|
|
-
|
|
(28)
|
|
8
|
|
(64)
|
Eligible Dividends
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.
Non-IFRS Financial Measures and Presentation
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 in management's judgment would make the
period-over-period comparison of results from operations less
meaningful. Other items 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 that
are not part of ongoing activities are excluded from 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 analyze its results, financial position and cash flows. In
this basis of presentation, Power Corporation's interests in Power
Financial and other subsidiaries are accounted for using the equity
method. This non-consolidated basis, which is a non-IFRS presentation,
is useful for the reader as it isolates the parent's activities from
those of operating subsidiaries and reflects their individual
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