CI Financial reports second quarter results; pre-tax operating earnings up 14%



    TSX Symbol: CIX

    TORONTO, Aug. 11 /CNW/ - CI Financial Corp. ("CI") today released
unaudited financial results for the quarter ended June 30, 2009.

    
    -------------------------------------------------------------------------
                              Quarter ended       Quarter ended
                              June 30, 2009      March 31, 2009
                             (millions except    (millions except
    HIGHLIGHTS              per share amounts)  per share amounts)  % change
    -------------------------------------------------------------------------
    Average Retail Assets
     Under Management            $53,727             $48,681            10
    -------------------------------------------------------------------------
    Gross Sales                   $2,324              $2,132             9
    -------------------------------------------------------------------------
    Net Sales                       $663                $178           272
    -------------------------------------------------------------------------
    EBITDA (adjusted)(1),(2)      $135.8              $124.7             9
    -------------------------------------------------------------------------
    EBITDA Per Share
     (adjusted)(1),(2)             $0.46               $0.43             9
    -------------------------------------------------------------------------
    Pre-Tax Operating
     Earnings Per Share(1)         $0.41               $0.36            14
    -------------------------------------------------------------------------
    Earnings Per Share
     (adjusted)(2),(3)             $0.20               $0.17            18
    -------------------------------------------------------------------------
    Earnings Per Share             $0.17               $0.20           (15)
    -------------------------------------------------------------------------
    SG&A expenses (adjusted)(2)   57 bps              63 bps           (10)
    -------------------------------------------------------------------------
    (1) EBITDA (Earnings before interest, taxes, depreciation and
        amortization) and pre-tax operating earnings are not standardized
        earnings measures prescribed by GAAP; however, management 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. CI's method of calculating these
        measures may not be comparable to similar measures presented by other
        companies. EBITDA is a measure of operating performance, a
        facilitator for valuation and a proxy for cash flow.
    (2) Adjusted for equity-based compensation expense.
    (3) Adjusted for a one-time $8 million tax recovery recorded in the first
        quarter of 2009.
    

    Fee-earning assets at June 30, 2009 were $87.4 billion, up 12% from $78.0
billion at March 31, 2009. This increase was attributable to improving markets
and positive net sales of funds. Fee-earning assets were comprised of $55.6
billion in investment funds and pools at CI Investments Inc. and United
Financial Corporation, $0.5 billion in structured products, $3.9 billion in
institutional managed assets, $26.6 billion in dealer assets under
administration at Assante Wealth Management (Canada) Ltd. and Blackmont
Capital Inc., and $0.8 billion in other fee-earning assets.
    Gross sales and net sales of funds for the three months ended June 30,
2009 were $2.3 billion and $663 million, respectively. Over the six-month
period ended June 30, 2009, CI's net sales of long-term funds were $882
million, ranking it second in long-term net sales among all Canadian fund
companies. CI's average retail assets under management in the second quarter
were $53.7 billion, an increase of 10% from $48.7 billion in the first
quarter.
    As part of CI's continued commitment to keep costs in line with asset
levels, selling, general and administrative ("SG&A") expenses, adjusted for
equity-based compensation expense, in the second quarter were $76.7 million,
or 0.57% of average retail assets under management. These figures compare to
$75.7 million, or 0.63% of average retail assets under management, in the
first quarter of 2009.
    For the three-months ended June 30, 2009, CI reported pre-tax operating
earnings per share of $0.41, an increase of 14% from $0.36 per share for the
three-months ended March 31, 2009. After adjusting for equity-based
compensation expense, CI reported $0.46 in EBITDA per share for the second
quarter, up 9% from the prior quarter.
    CI reported earnings per share of $0.17 in the second quarter of 2009
compared with $0.20 in the first quarter. The second quarter included income
tax expenses of $24.8 million, compared with $16.3 million in the prior
quarter, when a one-time $8.0 million income tax recovery was recorded. After
adjusting for this income tax item in the first quarter and equity-based
compensation expense, CI's earnings per share were up 18% for the consecutive
quarters, to $0.20 per share.
    At June 30, 2009, CI had long-term debt of $871.5 million, down $127.9
million from the beginning of the year. By August 10, 2009, CI had paid down a
further $15.5 million of debt.
    At August 10, 2009, CI's retail assets under management totalled $58.2
billion, a gain of $4.5 billion or 8% over the average level of assets for the
second quarter. At current asset levels and margins, CI expects significant
improvements to profitability for the remainder of the year.
    In other matters, the Board of Directors declared monthly dividends of
$0.05 per share payable on September 15, October 15 and November 13, 2009 to
shareholders of record on August 31, September 30, and October 31, 2009,
respectively. The monthly dividend of $0.05 per share represents a yield of
2.9% on CI's closing share price of $20.90 on August 10, 2009.
    As of July 31 2009, CI had 292,396,103 shares outstanding.
    For detailed financial statements for the quarter ended June 30, 2009,
including Management's Discussion and Analysis, please refer to CI's website
at www.ci.com/cix under Reports, or contact investorrelations@ci.com.

    Analysts' Conference Call

    Chief Executive Officer William T. Holland will host a conference call
and webcast with analysts today at 4:00 p.m. Eastern time to discuss CI's
second quarter results. The webcast will include a slide presentation and be
available at www.ci.com/q2. Alternatively, investors may listen to the
discussion by dialing (416) 644-3419 or 1-800-595-8550.
    The call will be available for playback until August 25, 2009 at (416)
640-1917 or 1-877-289-8525 (passcode: 21311573, followed by the number sign).
The webcast will be archived at www.ci.com/q2.

    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. CI is
on the Web at www.ci.com/cix.

    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.





For further information:

For further information: Stephen A. MacPhail, President, CI Financial
Corp., (416) 364-1145


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