TSX Symbol: CIX
TORONTO, Feb. 16, 2017 /CNW/ - CI Financial Corp. ("CI")
today released audited financial results for the quarter and year
ended December 31, 2016.
ANNUAL
RESULTS1 (in $millions except for per share
data)
|
Year ended
December 31,
2016
|
Year ended
December 31,
2015
|
%
change
|
Assets Under
Management
|
117,889
|
111,124
|
6
|
Average Assets Under
Management
|
110,852
|
108,384
|
2
|
Net Income
|
503.0
|
553.5
|
(9)
|
Adjusted Net
Income2,3
|
532.1
|
563.7
|
(6)
|
Earnings Per
Share
|
1.86
|
1.99
|
(7)
|
Adjusted Earnings Per
Share2,3
|
1.96
|
2.02
|
(3)
|
EBITDA Per
Share2,3
|
3.10
|
3.33
|
(7)
|
Adjusted EBITDA Per
Share 2,3
|
3.24
|
3.37
|
(4)
|
Free Cash
Flow3
|
604.7
|
606.4
|
-
|
|
|
|
|
QUARTERLY
RESULTS1 (in $millions except for per share
data)
|
Quarter
ended
December 31,
2016
|
Quarter
ended
December 31,
2015
|
%
change
|
Average Assets Under
Management
|
114,780
|
108,688
|
6
|
Net Income
|
121.0
|
127.2
|
(5)
|
Adjusted Net
Income2,3
|
140.6
|
137.0
|
3
|
Earnings Per
Share
|
0.45
|
0.46
|
(2)
|
Adjusted Earnings Per
Share2,3
|
0.53
|
0.50
|
6
|
EBITDA Per
Share2,3
|
0.75
|
0.79
|
(5)
|
Adjusted EBITDA Per
Share 2,3
|
0.85
|
0.83
|
2
|
Free Cash
Flow3
|
154.0
|
151.4
|
2
|
|
|
|
|
OTHER QUARTERLY
METRICS
|
Quarter
ended
December 31,
2016
|
Quarter
ended
December 31,
2015
|
%
change
|
Dividends Recorded
Per Share (in $)
|
0.345
|
0.330
|
5
|
Long-Term Debt (in
$millions; including current portion)
|
758.7
|
559.3
|
36
|
Net Debt (in
$millions)3
|
572.9
|
433.1
|
32
|
SG&A
Expenses4
|
35.5 bps
|
35.4 bps
|
-
|
Return on
Equity5
|
27.9%
|
29.2%
|
n/a
|
1 All results are net of non-controlling
interest.
2 The year ended December 31,
2016 excludes $39.6 million
($29.1 million after tax) in
provisions for compensation, legal and tax costs. The quarter ended
December 31, 2016 excludes
$26.6 million ($19.6 million after tax) in provisions for
compensation, legal and tax costs. The year ended December 31, 2015 excludes income of $7.5 million related to a fair value adjustment
to contingent consideration, $19.6
million ($16.2 million after
tax) in provisions for compensation, legal and tax costs, and a
$3.0 million ($1.4 million after tax and non-controlling
interest) acceleration in the amortization of fund management
contracts. The quarter ended December 31,
2015 excludes $10.8 million
($9.8 million after tax) in
provisions for compensation, legal and tax costs.
3 Adjusted net income, adjusted earnings per share,
EBITDA (earnings before interest, taxes, depreciation and
amortization), EBITDA per share, adjusted EBITDA per share, pre-tax
operating earnings, 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.
4 As a percentage of average assets under
management.
5 Trailing 12 months.
Average assets under management reached $110.9 billion for 2016, an increase of 2% from
2015. Fourth quarter average assets were up 6% year over year. At
December 31, 2016, CI's assets under
management were $117.9 billion, up
$6.8 billion or 6% from $111.1 billion at December
31, 2015. Effective November 15,
2016, CI's assets under management included the assets of
Grant Samuel Funds Management (GSFM), a leading independent manager
and distributor of investment strategies and products in the
Australian and New Zealand
markets.
CI had gross sales of $3.5 billion
in the fourth quarter of 2016, up 9% from the prior quarter and
down 3% from the fourth quarter of 2015. During the fourth quarter
of 2016, two financial institutions redeemed a total of
$2.3 billion in assets from CI, as
was expected and discussed during CI's third quarter earnings
conference call in November. The margins associated with these
assets were low and the financial impact will be minimal. In total,
CI reported net redemptions of $2.6
billion in the fourth quarter, down from net sales of
$0.3 billion in the fourth quarter of
last year.
Earnings per share in the fourth quarter were $0.45, a decrease of 2% from $0.46 in the fourth quarter of 2015. Earnings per
share adjusted to exclude provisions for compensation, legal and
tax costs, were $0.53, up from
$0.51 in the prior quarter and up
from $0.50 in the same quarter last
year. For the year, earnings per share were $1.86 compared with $1.99 in 2015; adjusted earnings per share were
$1.96, down 3% from $2.02 last year.
Adjusted EBITDA per share was $0.85 for the fourth quarter of 2016, up 2% from
$0.83 per share for both the prior
quarter and the fourth quarter of 2015.
Selling, general and administrative (SG&A) expenses as a
percentage of average assets under management were 35.5 basis
points, in line with 35.4 basis points for both the prior quarter
and the same quarter in 2015.
CI generated $604.7 million in
free cash flow during the year ended December 31, 2016, as compared to $606.4 million in 2015. CI's cash flow
facilitated the repurchase of $290.9
million in CI shares and the payment of $368.7 million in dividends in 2016. As at
January 31, 2017, CI had 264,767,657
shares outstanding.
"2016 was a unique and challenging year for CI and the
industry," said Peter W. Anderson,
CI Chief Executive Officer. "During the year we made a number of
strategic improvements to our business to address these challenges
and our fourth quarter results show that our strategy is working. I
am very pleased with the position of our business today, but I'm
even more excited about the initiatives that will be rolled out in
2017."
The Board of Directors declared a monthly cash dividend of
$0.115 per share, payable on each of
March 15, 2017, April 13, 2017 and May 15,
2017 to shareholders of record on February 28, 2017, March
31, 2017 and April 30, 2017,
respectively. The monthly dividend represented a yield of 4.9% on
CI's closing share price of $28.31 on
February 15, 2017.
For detailed financial statements for the quarter and year ended
December 31, 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, Neal Kerr, President of CI Institutional Asset
Management, and Roy Ratnavel, Head
of Retail Sales for CI Investments. The 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
(416) 340-2217 or 1-800-806-5484 (passcode: 8268169). A replay of
the call will be available until March 2,
2017 at (905) 694-9451 or 1-800-408-3053 (passcode:
3729048). The webcast will be archived at www.ci.com/q4.
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, Grant Samuel Funds
Management of Australia, and First
Asset Investment Management, 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.