CALGARY, Nov. 12, 2013 /CNW/ - Olympia Financial Group Inc. (TSX: OLY) today announced its operating and financial results for the period ended September 30, 2013 as well as a potential special dividend and anticipated changes to its 2014 quarterly dividend policy.
Third Quarter Results
The unaudited condensed interim financial statements and notes, as well as management's discussion and analysis, are now available on SEDAR (www.sedar.com).
Highlights for the three month period ended September 30, 2013 include the following:
- total revenue increased 9%, to $11.50 million from $10.58 million, compared to the same quarter of the previous year;
- earnings from operations (before income tax and interest) decreased 18%, to $0.80 million from $0.97 million, compared to the same quarter of the previous year;
- earnings before income taxes (including earnings from operations and interest) increased 4%, to $2.23 million from $2.15 million, compared to the same quarter of the previous year; and
- total interest increased 22%, to $1.44 million from $1.18 million, compared to the same quarter of the previous year.
Potential Special Dividend and Anticipated Changes to the 2014 Quarterly Dividend Policy
As previously disclosed, Olympia has entered into an agreement to sell its Corporate and Shareholder Services division (the "CSS Sale Transaction") for gross proceeds of $43 million, subject to certain post-closing adjustments. After paying certain executive management profit sharing entitlements and closing costs, Olympia anticipates receiving after-tax net proceeds of approximately $29.6 million (assuming no post-closing adjustments are required). The CSS Sale Transaction is currently expected to close on or about December 12, 2013. In the event that the CSS Sale Transaction is completed, Olympia expects to distribute the majority of the after-tax net proceeds, up to a maximum of $10.00 per common share, to shareholders as a special dividend. In the event the CSS Sale Transaction is completed as contemplated, the details of any special dividend to shareholders will be included in a subsequent press release. For greater certainty, the Board of Directors has not declared a special dividend at this time but rather is advising of its intention to do so in the event that the CSS Sale Transaction is completed. Olympia's dividend reinvestment plan would be suspended and would not be eligible for use by shareholders with respect to any special dividend that is declared in connection with the completion of the CSS Sale Transaction.
In the event that the CSS Sale Transaction is completed and a special dividend is declared and paid to shareholders as contemplated above, the Board intends on changing the company's dividend policy whereby the regular quarterly dividend rate will be decreased to $0.50 per share on its common shares from the current rate of $0.70 per share, a decrease of 28.50%. Pursuant to the current dividend policy, Olympia pays regular quarterly dividends on its common shares on or about January 31, April 30, July 31 and October 31. As at the date hereof, Olympia has an aggregate of 2,486,552 common shares issued and outstanding.
In the event the CSS Sale Transaction is not completed, Olympia would not be declaring a special dividend and anticipates that it would leave the current dividend policy unchanged (being a quarterly dividend of $0.70 per share).
Statements Regarding Forward Looking Information
Certain portions of this press release as well as other public statements by the Corporation contain "forward -looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward -looking statements", which may not be based on historical fact. Wherever possible, words such as "will", "plans," "expects," "targets," "continue", "estimates," "scheduled," "anticipates," "believes," "intends," "potential," "may," and similar expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. Forward-looking statements contained in the Corporation's public disclosure include, without limitation, the Corporation's earnings expectations, fee income, expense levels, dividend amounts, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete strategic transactions and other factors. In addition, this news release contains forward looking statements relating to: the anticipated after-tax net proceeds to the Corporation from the sale of the Corporation's transfer agency and corporate trust businesses; the anticipated waiver or satisfaction of conditions to closing; the anticipated closing date for the transaction; and the anticipated distribution of certain after-tax net proceeds to shareholders as a special dividend.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current interest rate and liquidity conditions affecting the Corporation and the Canadian economy. Certain material factors or assumptions are applied by the Corporation in making forward-looking statements, including without limitation, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, acceptance of its products in the marketplace, its operating cost structure, the current tax regime and the ability of the Corporation and Computershare to obtain necessary third party and governmental approvals, as applicable, to secure the employment of the requisite employees of the Corporation in connection with Computershare's assumption of the Corporation's transfer agency and corporate trust businesses, and retain existing customers and generate new business.
Forward-looking statements reflect the Corporation's current views with respect to future events and are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Readers should not place undue reliance on such forward-looking statements, as they reflect the Corporation's current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic, regulatory, competitive, political and social uncertainties and contingencies. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including among others a significant downturn in capital markets or the economy as a whole, reduced large-volume foreign exchange revenue, errors or omissions by the Corporation in providing services to its customers or the inability to maintain customer satisfaction with services provided, significant changes in foreign currency exchange rates, extreme price and volume fluctuations in the stock markets, significant increases in the cost of complying with applicable regulatory requirements, civil unrest, economic recession, war and acts of terrorism which may adversely impact the North American and global economic and financial markets, inability to raise funds through public or private financing in the event that the Corporation incurs operating losses or requires substantial capital investment in order to respond to unexpected competitive pressures, significant changes in interest rates, failure by the Corporation to meet ongoing regulatory requirements, the failure of counterparties to honour their financial or contractual obligations to the Corporation, failure by the Corporation to generate or obtain sufficient cash or cash equivalents in a timely manner and at a reasonable price or to meet its commitments as they become due, failure by the Corporation to attract and to retain the necessary employees to meet its needs, failure of a requisite number of the Corporation's employees to accept employment with Computershare in connection with the assumption of the Corporation's transfer agency and corporate trust businesses, failure by the Corporation to adequately monitor the services provided by third party service providers or to establish alternative arrangements if required, a failure of the computer systems of the Corporation or one or more of its service providers or the risks detailed from time-to-time in the Corporation's quarterly filings, annual information forms, annual reports and annual filings with securities regulators. Forward-looking information will only be updated as required pursuant to the requirements of applicable securities laws.
About Olympia Financial Group Inc.
Olympia Financial Group Inc. ("OFGI") conducts most of its operations through its wholly owned subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts, acts as a registrar and transfer agent for public and private issuers and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc.
OFGI's common shares are listed on the Toronto Stock Exchange under the symbol "OLY".
SOURCE: Olympia Financial Group Inc.
For further information:
Olympia Financial Group Inc.
Rick Skauge, President and Chief Executive Officer
Gerhard Barnard, Vice-President, Finance and Chief Financial Officer
Phone: (403) 261-0900
Fax: (403) 265-1455