CI Financial reports second quarter results, increases distribution



    TSX Symbol: CIX.UN

    TORONTO, Aug. 2 /CNW/ - CI Financial Income Fund ("CI") today released
unaudited financial results for the three and six months ended June 30, 2007.


    
    -------------------------------------------------------------------------
                             Three-month period  Three-month period
                               to June 30, 2007   to May 31, 2006
    HIGHLIGHTS                 (millions except  (millions except       %
                               per unit amounts) per share amounts)   change
    -------------------------------------------------------------------------
    Retail Assets Under
     Management                     $66,258            $56,905          16
    -------------------------------------------------------------------------
    Net Income                       $151.6              $69.3         119
    -------------------------------------------------------------------------
    Earnings Per Unit                 $0.54              $0.24         125
    -------------------------------------------------------------------------
    EBITDA(*)                        $194.1             $137.0          42
    -------------------------------------------------------------------------
    EBITDA Per Unit(*)                $0.69              $0.48          44
    -------------------------------------------------------------------------

    (*) EBITDA (earnings before interest, taxes, depreciation and
    amortization) is a non-GAAP (generally accepted accounting principles)
    earnings measure that does not have any standardized meaning prescribed
    by GAAP. It is therefore unlikely to be comparable to similar measures
    presented by other companies. However, management believes that most
    unitholders, creditors, other stakeholders and investment analysts prefer
    to include the use of this performance measure in analyzing CI's results.

    -------------------------------------------------------------------------
                               Six-month period  Six-month period
                               to June 30, 2007   to May 31, 2006
    HIGHLIGHTS                 (millions except  (millions except       %
                               per unit amounts) per share amounts)   change
    -------------------------------------------------------------------------
    Net Income                       $293.7             $142.4         106
    -------------------------------------------------------------------------
    Earnings Per Unit                 $1.05              $0.50         110
    -------------------------------------------------------------------------
    EBITDA(*)                        $369.7             $275.9          34
    -------------------------------------------------------------------------
    EBITDA Per Unit(*)                $1.32              $0.97          36
    -------------------------------------------------------------------------

    (*) EBITDA (earnings before interest, taxes, depreciation and
    amortization) is a non-GAAP (generally accepted accounting principles)
    earnings measure that does not have any standardized meaning prescribed
    by GAAP. It is therefore unlikely to be comparable to similar measures
    presented by other companies. However, management believes that most
    unitholders, creditors, other stakeholders and investment analysts prefer
    to include the use of this performance measure in analyzing CI's results.
    

    CI changed its year-end to December 31 from May 31 when it converted to
an income trust in June 2006. Highlights above are based on the three-month
and six-month periods ended June 30, 2007. The comparative periods are the
three-month and six-month periods ended May 31, 2006.
    Fee-earning assets at June 30, 2007, were $98.1 billion, up 33% from
$73.8 billion a year earlier. The increase in fee-earning assets is
attributable to growth in the market value of CI's funds and positive net
sales, as well as the addition of Lakeview Asset Management Inc., KBSH Capital
Management Inc., and Blackmont Capital Inc. from the acquisition of Rockwater
Capital Corporation in April 2007. Fee-earning assets were comprised of
$55.5 billion in CI mutual and segregated funds (including Lakeview), $9.9
billion in United funds, $867 million in structured products, $3.2 billion in
institutional managed assets, $1.8 billion in administered/other assets such
as labour-sponsored funds, and $26.8 billion in net dealer assets under
administration (including Assante Wealth Management and Blackmont).
    Net sales for the three months and six months ended June 30, 2007
totalled $569 million and $1,483 million respectively, ranking CI third among
the non-bank asset management companies and sixth overall - positioning CI
well for another robust year of fund sales. In addition, CI reported net sales
of $257 million for July, 2007, an increase of 78% from $144 million in July,
2006.
    Net income for the quarter ended June 30, 2007 was $151.6 million, up
119% from $69.3 million for the three months ended May 31, 2006. On a per unit
basis, earnings for the three-month period increased 125% to $0.54 per unit
from $0.24 per share in the prior year. Net income for the six months ended
June 30, 2007 was $293.7 million, up 106% from $142.4 million for the
comparable six month period last year. Earnings per unit for the six-month
period increased 110% to $1.05 per unit from $0.50 per share from the
six-month period ended May 31, 2006.
    EBITDA (earnings before interest, taxes, depreciation and amortization)
for the quarter ended June 30, 2007 was $194.1 million, up 42% from
$137.0 million in the three months ended May 31, 2006. EBITDA per unit
increased 44% to $0.69 during the three-month period this year from $0.48 in
EBITDA per share in the comparable quarter last year. EBITDA for the six
months ended June 30, 2007 was $369.7 million, up 34% from $275.9 million in
the comparable period last year. On a per unit basis, EBITDA increased 36% to
$1.32 for the first half of the year from $0.97 per share for the six-month
period ended May 31, 2006.
    For detailed financial statements for the quarter ended June 30, 2007,
including Management's Discussion and Analysis, please refer to CI's website
at www.ci.com/cix under Reports or contact investorrelations@ci.com.
    In other matters, a monthly distribution of $0.19 per trust unit of CI
and exchangeable limited partner unit of Canadian International LP was
declared payable on September 14, October 15 and November 15, 2007. These
distributions reflect the growth in CI's assets under management and current
expectations for distributable cash. This represents a yield of 8.3% on CI's
closing unit price of $27.34 on August 1, 2007.
    As of July 31, 2007, there were 139,335,664 issued and outstanding trust
units of CI and 146,938,513 exchangeable limited partner units of Canadian
International LP, for a total outstanding amount of 286,274,177.

    CI Financial Income Fund (TSX: CIX.UN) 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: Douglas J. Jamieson, Senior Vice-President and
Chief Financial Officer, (416) 364-1145


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