TSX Symbol: CIX
TORONTO, May 11, 2017 /CNW/ - CI Financial Corp.
("CI") today released audited financial results for the quarter
ended March 31, 2017.
QUARTERLY
RESULTS1 (in $millions except for per share
data)
|
Quarter
ended
March 31,
2017
|
Quarter
ended
March 31,
2016
|
%
change
|
Average Assets Under
Management
|
119,423
|
107,321
|
11
|
Net Income
|
134.2
|
116.6
|
15
|
Adjusted Net
Income2,3
|
134.2
|
126.1
|
6
|
Earnings Per
Share
|
0.51
|
0.42
|
21
|
Adjusted Earnings Per
Share2,3
|
0.51
|
0.46
|
11
|
EBITDA Per
Share3
|
0.83
|
0.72
|
15
|
Adjusted EBITDA Per
Share 2,3
|
0.83
|
0.77
|
8
|
Free Cash
Flow3
|
153.8
|
143.6
|
7
|
|
|
|
|
OTHER QUARTERLY
METRICS
|
Quarter
ended
March 31,
2017
|
Quarter
ended
March 31,
2016
|
%
change
|
Dividends Recorded
Per Share (in $)
|
0.345
|
0.330
|
5
|
Long-Term Debt (in
$millions; including current portion)
|
864.8
|
613.5
|
41
|
Net Debt (in
$millions)3
|
673.5
|
493.1
|
37
|
SG&A
Expenses4
|
36.7 bps
|
36.1 bps
|
2
|
Return on
Equity5
|
30.2%
|
29.1%
|
n/a
|
|
|
1 All results are net of
non-controlling interest, and reported in Canadian
dollars.
|
2 The quarter ended March 31,
2016 excludes $13.0 million ($9.6 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, 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,
calculated using adjusted net income.
|
Average assets under management were $119.4 billion for the first quarter of 2017, an
increase of 11% from the first quarter of 2016. At March 31, 2017, CI's assets under management were
$120.7 billion, up $12.0 billion from March
31, 2016.
In the first quarter of 2017, CI had gross sales of $4.6 billion, up 29% from the same quarter of
2016. For the quarter ended March 31,
2017, CI had net sales in Canada of $43
million and Grant Samuel Funds Management of Australia ("GSFM") had retail net sales of
$93 million. GSFM also experienced
$424 million in net redemptions from
low-margin institutional accounts, which resulted in CI reporting
$288 million in net redemptions for
the period.
Earnings per share in the first quarter of 2017 were
$0.51, an increase of 21% from the
same quarter last year. The first quarter of 2016 included
$9.6 million in after-tax provisions
for compensation, legal and tax costs. Earnings per share adjusted
for these provisions were up 11% for the comparable periods.
Adjusted EBITDA per share was $0.83
for the quarter ended March 31, 2017,
up 8% from $0.77 per share for the
quarter ended March 31, 2016.
Selling, general and administrative (SG&A) expenses as a
percentage of average assets under management were 36.7 basis
points, up from 36.1 basis points for the same quarter in 2016. The
increase was primarily due to strategic investments in technology,
sales and marketing.
CI generated $153.8 million in
free cash flow during the quarter ended March 31, 2017, compared to $143.6 million in the quarter ended March 31, 2016. CI's cash flow facilitated the
repurchase of $72.6 million in CI
shares and the payment of $91.5
million in dividends. As at April 30,
2017, CI had 261,848,278 shares outstanding.
"CI entered 2017 in a stronger position, as shown by the growth
in assets and improvement in fund performance and quarterly sales
relative to last year," said Peter
Anderson, Chief Executive Officer of CI. "These results show
that the strategies we initiated last year are proving successful
and, as we enter the second quarter, we continue to pursue new
projects across our business aimed at achieving continued growth in
Canada and abroad."
The Board of Directors declared a 2% increase in the monthly
cash dividend to $0.1175 per share,
payable on each of June 15, 2017,
July 14, 2017 and August 15, 2017 to shareholders of record on
May 31, 2017, June 30, 2017 and July 31,
2017, respectively. The monthly dividend represented a yield
of 5.2% on CI's closing share price of $26.90 on May 10,
2017.
For detailed financial statements for the quarter ended
March 31, 2017, 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, led by Chief Executive Officer Peter Anderson and Chief Financial Officer
Douglas Jamieson. The call and a
slide presentation will be accessible through a webcast at
www.ci.com/q1. Alternatively, investors may listen to the
discussion by dialing (416) 340-2217 or 1-800-806-5484 (passcode:
8635623#).
A replay of the call will be available until May 25, 2017 at 11:59
p.m. at (905) 694-9451 or 1-800-408-3053 (passcode:
5492615#). The webcast will be archived at www.ci.com/q1.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned
wealth management company with approximately $160.5 billion in assets as of March 31, 2017. 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.