TSX Symbol: CIX
TORONTO, Feb. 10, 2016 /CNW/ - CI Financial Corp. ("CI")
today released audited financial results for the quarter and year
ended December 31, 2015.
|
ANNUAL
RESULTS1 (in $millions except for per share
data)
|
Year ended
December 31,
2015
|
Year ended
December 31,
2014
|
%
change
|
|
Assets Under
Management
|
111,124
|
102,886
|
8
|
|
Average Assets Under
Management
|
108,384
|
98,408
|
10
|
|
Net Sales
|
3,431
|
3,928
|
(13)
|
|
Net Income
|
553.5
|
525.0
|
5
|
|
Adjusted Net
Income2
|
563.7
|
520.0
|
8
|
|
Earnings Per
Share
|
1.99
|
1.85
|
8
|
|
Adjusted Earnings Per
Share2
|
2.02
|
1.83
|
10
|
|
EBITDA Per Share
2,3
|
3.37
|
3.15
|
7
|
|
Pre-Tax Operating
Earnings Per Share2,3
|
3.20
|
2.99
|
7
|
|
Cash Provided By
Operating Activities
|
647.4
|
702.6
|
(8)
|
|
Free Cash
Flow3
|
596.6
|
557.4
|
7
|
|
QUARTERLY
RESULTS1 (in $millions except for per share
data)
|
Quarter
ended
December 31,
2015
|
Quarter
ended
December 31,
2014
|
%
change
|
|
Average Assets Under
Management
|
108,688
|
101,120
|
7
|
|
Net Income
|
127.2
|
140.4
|
(9)
|
|
Adjusted Net
Income2
|
137.0
|
135.4
|
1
|
|
Earnings Per
Share
|
0.46
|
0.50
|
(8)
|
|
Adjusted Earnings Per
Share2
|
0.50
|
0.48
|
4
|
|
EBITDA Per Share
2,3
|
0.83
|
0.82
|
1
|
|
Pre-Tax Operating
Earnings Per Share2,3
|
0.79
|
0.78
|
1
|
|
Cash Provided By
Operating Activities
|
146.8
|
187.2
|
(22)
|
|
Free Cash
Flow3
|
141.6
|
148.3
|
(5)
|
|
OTHER QUARTERLY
METRICS
|
Quarter
ended
December 31,
2015
|
Quarter
ended
December 31,
2014
|
%
change
|
|
Dividends Recorded
Per Share (in $)
|
0.330
|
0.310
|
6
|
|
Long-Term Debt (in
$millions; including current portion)
|
559.3
|
307.4
|
82
|
|
Net Debt (in
$millions)3
|
433.1
|
185.2
|
134
|
|
SG&A
Expenses4
|
35.4 bps
|
34.1 bps
|
n/a
|
|
Return on
Equity5
|
29.2%
|
27.9%
|
n/a
|
|
1
All results are net of non-controlling interest.
|
|
2
The year ended December 31, 2015 excludes income of $7.5 million
related to a fair value adjustment to contingent consideration, an
$8.8 million ($6.4 million after tax) provision for legal costs, a
$10.8 million ($9.8 million after tax) provision for fund
remediation (which includes $8 million paid to the OSC), 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 the $10.8 million ($9.8
million after tax) provision for fund remediation. The year ended
and quarter ended December 31, 2014 exclude income of $5.0 million
related to a fair value adjustment to contingent
consideration.
|
|
3
EBITDA, pre-tax operating earnings, free cash flow and net debt are
not standardized measures prescribed by IFRS; however, management
uses these financial measures and also believes that most of its
shareholders, creditors, other stakeholders and investment analysts
prefer to include the use of these performance measures in
analyzing CI's results. 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 $108.4 billion for 2015, an increase of 10% from
2014. At December 31, 2015, CI's
assets under management were $111.1
billion, up 8% from $102.9
billion at December 31, 2014.
Over the same period, the S&P/TSX Composite Index declined 8%
and the FTSE TMX Canada Universe Bond Index was up 4%. In 2015, CI
had gross sales of $15.4 billion, up
$1.0 billion from $14.4 billion in the prior year. Total net sales
for the year were $3.4 billion
compared to $3.9 billion in 2014. Net
sales in the fourth quarter of 2015 were $299 million.
Net income for the year was $553.5
million, a 5% increase over $525.0
million in 2014. Earnings per share increased 8% to
$1.99 from $1.85 in 2014. Earnings per share in the fourth
quarter were $0.46, a decrease of 8%
from $0.50 in the fourth quarter of
2014.
EBITDA per share for the year increased 7% to $3.37 in 2015 from $3.15 in 2014. EBITDA per share for the fourth
quarter was $0.83, a 1% increase from
the fourth quarter of 2014. Pre-tax operating earnings per share
were up 7% for the year and up 1% in the quarter compared to the
fourth quarter of 2014.
During the year, CI maintained its discretionary spending below
the rate of growth in assets under management. Selling, general and
administrative (SG&A) expenses as a percentage of average
assets under management fell to 34.4 basis points in 2015, down
from 34.7 basis points in 2014. However, SG&A for the fourth
quarter of 2015 increased to 35.4 basis points from 34.1 basis
points in the fourth quarter of 2014, as CI continued to
invest in sales, marketing and investment management
initiatives.
CI generated $596.6 million in
free cash flow during the year ended December 31, 2015. This represented a 7% increase
compared to $557.4 million in 2014.
CI's cash flow facilitated the repurchase of $243.6 million in CI shares and the payment of
$362.2 million in dividends. As at
January 31, 2016, CI had 275,700,228
shares outstanding.
"In 2015, CI not only reported record year-end AUM and profits,
but we also invested significantly in adding portfolio management
resources and enhancing our service offering to continue growing
our affluent and high-net-worth business," said Stephen A. MacPhail, CI President and Chief
Executive Officer. "This is particularly evident in the success of
Stonegate Private Counsel and Assante Wealth Management. In 2016,
we expect to see the benefits of these investments, while we
continue to focus on efficiently delivering our services."
The Board of Directors declared a monthly cash dividend of
$0.11 per share payable on each of
March 15, April 15 and May 13,
2016 to shareholders of record on February 29, March
31 and April 30, 2016,
respectively. The monthly dividend represents a yield of 4.7% on
CI's closing share price of $28.35 on
February 10, 2016.
For detailed financial statements for the quarter ended
December 31, 2015, 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. President and
Chief Executive Officer Stephen
MacPhail and Chief Financial Officer Douglas Jamieson will be presenting CI's
results. Also attending will be Derek
Green, President of CI Investments, Steven Donald, President of Assante Wealth
Management, and Neal Kerr, President
of CI Institutional Asset Management. 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) 695-7806 or 1-888-789-9572 (passcode: 7958079).
The call will be available for playback until February 25, 2016 at (905) 694-9451 or
1-800-408-3053 (passcode: 7508195). The webcast will be archived at
www.ci.com/q4.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned
wealth management company. CI offers a broad range of investment
products and services, including an industry-leading selection of
investment funds, and 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.