CI Financial reports third quarter results; earnings up 20%

TSX Symbol: CIX

TORONTO, Nov. 8, 2011 /CNW/ - CI Financial Corp. ("CI") today released unaudited financial results for the quarter ended September 30, 2011.


Quarter ended
September 30, 2011
(millions except
per share amounts)
Quarter ended
June 30, 2011
(millions except
per share amounts)
% change Quarter ended
September 30, 2010
(millions except
per share amounts)
% change
Assets Under Management $   67,386 $  74,283 (9) $   66,763 1
Average Assets Under Management 70,823 74,525 (5) 64,597 10
Gross Sales 1,844 2,523 (27) 2,182 (15)
Redemptions 1,935 2,214 (13) 1,972 (2)
Net Sales (91) 309 n/a 210 n/a
EBITDA Per Share 1 0.61 0.65 (6) 0.56 9
Pre-Tax Operating Earnings Per Share1 0.56 0.60 (7) 0.52 8
Net Income 90.8 98.3 (8) 75.9 20
Earnings Per Share 0.32 0.34 (6) 0.26 23
SG&A Expenses 72.2 75.1 (4) 67.3 7

Pre-Tax Operating Earnings and EBITDA (earnings before interest, taxes, depreciation and amortization) are not standardized earnings measures prescribed by IFRS; 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 defines pre-tax operating earnings as income before income taxes less redemption fee revenue, non-recurring items, performance fees and investment gains, plus amortization of deferred sales commissions (DSC) and fund contracts, and equity-based compensation expense. CI's method of calculating these measures may not be comparable to similar measures presented by other companies.

For the quarter ended September 30, 2011, average assets under management were $70.8 billion, an increase of 10% from the third quarter of 2010 and a decrease of 5% over the previous quarter. Gross sales of funds for the quarter ended September 30, 2011 were $1.8 billion compared to $2.2 billion in the third quarter of 2010. Total redemptions for the third quarter of 2011 were $1.9 billion compared to $2.0 billion in the same quarter one year ago. CI had net sales of $0.7 billion in the nine months ending September 30, 2011. Assets under management at October 31, 2011 were $70.4 billion, up 4% from the end of the third quarter of 2011.

For the quarter ended September 30, 2011, CI reported EBITDA per share of $0.61, a 9% increase from the third quarter of 2010 and a 6% decrease from the prior quarter. CI reported earnings per share of $0.32 for the quarter, 23% higher than the third quarter of last year and 6% lower than the prior quarter. The third quarter of last year included a $3 million tax adjustment. Excluding this item, earnings per share would have increased 19% year over year. Pre-tax operating earnings per share, which include adjustments for non-recurring items and equity-based compensation, were up 8% from the third quarter of 2010 and down 7% from the prior quarter.

CI continued to control expenses so that they remained in line with assets under management. Selling, general and administrative (SG&A) expenses as a percentage of average assets were 0.40%, which compares to 0.41% in the third quarter of 2010 and 0.40% in the prior quarter.

CI generated $104.2 million in free cash flow during the quarter ended September 30, 2011, compared to $91.5 million in the third quarter of 2010. During the quarter, CI's cash flow facilitated a reduction in net debt by $12.6 million, the payment of $64.7 million in dividends and the repurchase of 1.7 million shares at a cost of $34.6 million.

"During the quarter, we focused on factors that we can control," said Stephen A. MacPhail, CI President and Chief Executive Officer. "We emphasized regular communications with our clients, and continued to build our investment management teams, sales and marketing presence, and training programs across all aspects of our operations. These business-building initiatives are being carried out with a focus on prudently managing expenses, leaving CI in an excellent position for the fourth quarter and 2012."

The Board of Directors declared monthly cash dividends of $0.075 per share payable on December 15, 2011, January 13, 2012 and February 15, 2012 to shareholders of record on November 30, 2011, December 31, 2011, and January 31, 2012, respectively. The monthly dividend represented a yield of 4.4% on CI's share price of $20.61 on November 7, 2011.

As of October 31, 2011, CI had 284,742,023 shares outstanding.

For detailed financial statements for the quarter ended September 30, 2011, including Management's Discussion and Analysis, please refer to CI's website at under Reports, or contact

Analysts' Conference Call
CI will hold a conference call with analysts today at 4 p.m. Eastern time. Speaking on the call will be Mr. MacPhail, Derek Green, President of CI Investments Inc., and Douglas Jamieson, Senior Vice-President and Chief Financial Officer of CI. The conference call and a slide presentation will be accessible through a webcast at Alternatively, investors may listen to the discussion by dialling 1-800-446-2782 (passcode: 31037696).

The call will be available for playback at 6:30 p.m. until November 22, 2011 at 1-888-843-7419 (passcode: 31037696). The webcast will be archived at

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

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.

For further information:

Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.
(416) 364-1145


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