TSX Symbol: CIX
TORONTO, Nov. 3, 2016 /CNW/ - CI Financial Corp.
("CI") today released unaudited financial results for the quarter
ended September 30, 2016.
QUARTERLY RESULTS (in
$millions except for per share data)1
|
Quarter
ended
September 30,
2016
|
Quarter
ended
September 30,
2015
|
%
change
|
Assets Under
Management
|
112,513
|
105,296
|
7
|
Average Assets Under
Management
|
112,256
|
108,541
|
3
|
Net
Income1
|
136.8
|
142.8
|
(4)
|
Earnings Per
Share1
|
0.51
|
0.51
|
-
|
EBITDA Per Share
2
|
0.83
|
0.85
|
(2)
|
Cash Provided By
Operating Activities
|
178.3
|
180.6
|
(1)
|
Free Cash
Flow2
|
159.6
|
160.8
|
(1)
|
|
|
|
|
OTHER
METRICS
|
Quarter
ended
September 30,
2016
|
Quarter
ended
September 30,
2015
|
%
change
|
Dividends Recorded
Per Share (in $)
|
0.345
|
0.330
|
5
|
Long-Term Debt (in
$millions; including current portion)
|
675.7
|
435.6
|
55
|
Net Debt (in
$millions)2
|
520.7
|
321.7
|
62
|
SG&A
Expenses3
|
35.4 bps
|
34.0 bps
|
4
|
Return on
Equity4
|
27.7%
|
29.9%
|
n/a
|
1 Net income and earnings per share are net of
non-controlling interest.
2 EBITDA (earnings before interest, taxes,
depreciation and amortization), EBITDA per share, free cash flow
and net debt are not standardized measures prescribed by IFRS;
however, CI believes that these financial measures provide
information that is useful to investors in understanding CI's
performance and facilitate a comparison of quarterly and full-year
results from period to period. These non-IFRS measures and
reconciliations to IFRS, where necessary, are included in
Management's Discussion and Analysis available at
www.cifinancial.com.
3 As an annualized percentage of average assets
under management.
4 Trailing 12 months.
CI's average assets under management were $112.3 billion in the third quarter, an increase
of $3.7 billion from the same quarter
last year and an increase of $3.3
billion from the prior quarter. CI's assets under management
of $112.5 billion at September 30, 2016 were up 7% year over year. In
comparison, the S&P/TSX Composite Index was up 14% and the FTSE
TMX Canada Universe Bond Index was up 6% over the same period.
Net income for the quarter of $136.8
million was up 6% from the prior quarter and down 4% from
$142.8 million in the third quarter
of 2015. Earnings per share of $0.51
were up 7% from the prior quarter and unchanged year over year.
EBITDA per share for the quarter ended September 30, 2016 was $0.83 compared to $0.78 in the quarter ended June 30, 2016 and $0.85 in the quarter ended September 30, 2015.
During the quarter, while CI had gross sales of $3.3 billion, up $0.7
billion from the prior quarter, a financial institution
advised CI that it planned to repatriate assets in-house that were
managed by CI. A portion of those assets were redeemed in the
quarter and as a result, CI's net sales were unchanged from the
prior quarter at -$1.5 billion. On
September 30, 2016 another financial
institution announced portfolio management changes to two funds
currently managed in part by sub-advisors of CI. In aggregate,
approximately $2.3 billion in
institutional assets under management are expected to be redeemed
by these institutions during the fourth quarter. These mandates
have low fees and the financial impact will be minimal.
Selling, general and administrative (SG&A) expenses as an
annualized percentage of average assets under management were 35.4
basis points in the third quarter of 2016, down from 36.2 basis
points in the prior quarter and up from 34.0 basis points in the
third quarter of 2015.
CI also announced yesterday that it has reached an agreement to
acquire an 80% stake in Grant Samuel Funds Management ("GSFM") of
Sydney, Australia, a leading
independent manager and distributor of investment strategies and
products in the Australian and New
Zealand markets with assets under management in excess of
A$6 billion.
"We continue to invest in various aspects of our operations to
achieve growth and build shareholder value," said Peter Anderson, CI's Chief Executive Officer.
"With GFSM, we are partnering with a leading firm in one of the
world's fastest-growing pension markets, consistent with our goal
of seeking opportunities for new business globally, as well as in
the Canadian market."
CI generated $159.6 million of
free cash flow during the third quarter of 2016, up $12.1 million from the second quarter of 2016 and
down $1.2 million from the third
quarter of 2015. During the quarter, CI repurchased $88.5 million in CI shares and paid $93.6 million in dividends. As at October 31, 2016, CI had 266,910,868 shares
outstanding.
The Board of Directors declared a monthly cash dividend of
$0.115 per share, payable on each of
December 15, 2016, January 13, 2017 and February 15, 2017 to shareholders of record on
November 30, 2016, December 31, 2016 and January 31, 2017, respectively. The monthly
dividend represented a yield of 5.9% on CI's closing share price of
$23.58 on November 2, 2016.
For further information and detailed financial statements for
the quarter ended September 30, 2016,
including Management's Discussion and Analysis, which contains
discussions of non-IFRS measures, 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. Chief Executive Officer Peter
Anderson and Chief Financial Officer Douglas Jamieson will be presenting CI's
results. Also attending will be Steven
Donald, President of Assante Wealth Management, Barry Gordon, President and Chief Executive
Officer of First Asset Investment Management, and Neal Kerr, President, CI Institutional Asset
Management and Executive Vice-President, Investment Management. The
call and a slide presentation will be accessible through a webcast
at www.ci.com/q3. Alternatively, investors may listen to the
discussion by dialling (416) 340-2217 or 1-866-696-5910 (passcode:
7525263). A replay of the call will be available until November 17, 2016 at (905) 694-9451 or
1-800-408-3053 (passcode: 5597226). The webcast will be archived at
www.ci.com/q3.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned
wealth management company. Its primary operating businesses are CI
Investments Inc., one of Canada's
largest investment managers, advisory businesses Assante Wealth
Management and Stonegate Private Counsel, and First Asset Capital
Corp., a leader in providing actively managed exchange-traded funds
to the Canadian marketplace. CI 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.