WINNIPEG, MANITOBA--(Marketwired - May 3, 2013) -
Readers are referred to the disclaimer regarding Forward-Looking Statements and Additional IFRS Measures at the end of this Release.
IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the first quarter of 2013.
Net earnings available to common shareholders for the three months ended March 31, 2013 were $180.5 million or 72 cents per share compared to net earnings available to common shareholders of $198.9 million or 77 cents per share for the comparative period in 2012.
Revenues for the three months ended March 31, 2013 were $652.7 million compared to $673.0 million in the first quarter of 2012. Expenses were $418.7 million for the first quarter of 2013 compared to $415.4 million in the first quarter of 2012.
Total assets under management at March 31, 2013 were $125.8 billion. This compared with total assets under management of $124.1 billion at March 31, 2012.
Shareholders' equity at March 31, 2013 was $4.5 billion, unchanged from March 31, 2012. Return on average common equity for the three months ended March 31, 2013 was 16.8% compared to 18.3% for the comparative period in 2012.
Investors Group Operations
"Sales increased over 2012 by 11% for mutual funds and 12% for insurance as our Consultants continued to serve the financial planning needs of our clients," said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "We have announced the addition of a further regional office in Winnipeg as we continue to invest in the growth of our Consultant Network."
Mutual fund sales for the first quarter of 2013 were $2.03 billion compared to $1.83 billion in the prior year, and mutual fund net sales for the first quarter were $376 million compared to net sales of $175 million a year ago.
The twelve month trailing redemption rate (excluding money market funds) was 9.8% at March 31, 2013, compared to 10.0% at December 31, 2012.
Mutual fund assets under management at March 31, 2013 were $63.0 billion compared to $60.6 billion at March 31, 2012.
Mackenzie Operations
Total sales for the first quarter of 2013 were $3.28 billion compared to $2.72 billion in the prior year. Total net sales for the first quarter were $254 million compared to total net redemptions of $933 million a year ago.
"Investment performance of our mutual fund family remained strong, with 73% of our fund assets ranked in the first or second quartile of their respective asset categories over the five year period ended March 31, 2013," said Charles R. Sims, FCA, President and Chief Executive Officer of Mackenzie Financial Corporation.
Mackenzie's total assets under management at March 31, 2013 were $64.3 billion compared with total assets under management of $64.4 billion at March 31, 2012. Mutual fund assets under management at March 31, 2013 were $42.4 billion compared to $41.5 billion a year ago.
Dividends
The Board of Directors has declared a dividend of 53.75 cents per share on the Company's common shares and has declared a dividend of $0.36875 per share on the Company's 5.90% Non-Cumulative First Preferred Shares, Series "B". The common share dividend and the preferred share dividend are payable on July 31, 2013 to shareholders of record on June 28, 2013.
Forward-Looking Statements
Certain statements in this Release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial's current expectations. Forward-looking statements are provided to assist the reader in understanding the Company's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.
A variety of material factors, many of which are beyond the Company's and its subsidiaries' control, affect the operations, performance and results of the Company, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's and its subsidiaries' success in anticipating and managing the foregoing factors.
The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.
Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.
Additional IFRS Measures
This release contains additional IFRS measures. Terms by which additional IFRS measures are identified include "earnings before income taxes and discontinued operations", "net earnings from continuing operations" and "net earnings available to common shareholders". Additional IFRS measures are used to provide management and investors with additional measures to assess earnings performance. These measures are considered additional IFRS measures as they are in addition to the minimum line items required by IFRS and are relevant to an understanding of the entity's financial performance.
The Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) of operating results are available on IGM Financial Inc.'s website at www.igmfinancial.com.
IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country's largest managers and distributors of mutual funds and other managed asset products, with over $125 billion in total assets under management as of April 30, 2013. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.
Media Note: A live webcast of IGM's Analyst conference call for the First Quarter 2013 will be held Friday May 3, 2013 at 3:30 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-866-226-1792 or 416-340-2216.
| IGM FINANCIAL INC. | |||||||
| Consolidated Statements of Earnings | |||||||
| (unaudited) | Three months ended March 31 | ||||||
| (in thousands of Canadian dollars, except shares and per share amounts) | 2013 | 2012 | |||||
| Restated | |||||||
| Revenues | |||||||
| Management fees | $ | 442,870 | $ | 456,618 | |||
| Administration fees | 85,585 | 85,264 | |||||
| Distribution fees | 81,445 | 85,179 | |||||
| Net investment income and other | 23,465 | 26,331 | |||||
| Proportionate share of affiliate's earnings | 19,333 | 19,641 | |||||
| 652,698 | 673,033 | ||||||
| Expenses | |||||||
| Commission | 218,029 | 221,384 | |||||
| Non-commission | 177,898 | 171,109 | |||||
| Interest | 22,749 | 22,911 | |||||
| 418,676 | 415,404 | ||||||
| Earnings before income taxes | 234,022 | 257,629 | |||||
| Income taxes | 51,298 | 56,564 | |||||
| Net earnings | 182,724 | 201,065 | |||||
| Perpetual preferred share dividends | 2,213 | 2,213 | |||||
| Net earnings available to common shareholders | $ | 180,511 | $ | 198,852 | |||
| Average number of common shares | |||||||
| (in thousands) | |||||||
| - Basic | 251,971 | 256,568 | |||||
| - Diluted | 252,455 | 257,383 | |||||
| Earnings per share (in dollars) | |||||||
| - Basic | $ | 0.72 | $ | 0.78 | |||
| - Diluted | $ | 0.72 | $ | 0.77 | |||
| IGM FINANCIAL INC. | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| As at and for the three months ended March 31 | ||||||||||||||||||
| (unaudited) | 2013 | 2012 | Change | |||||||||||||||
| Net earnings available to common shareholders ($ millions) | $ | 180.5 | $ | 198.9 | (9.2 | )% | ||||||||||||
| Diluted earnings per share | 0.72 | 0.77 | (6.5 | ) | ||||||||||||||
| Return on equity | 16.8 | % | 18.3 | % | ||||||||||||||
| Dividends per share | 0.5375 | 0.5375 | - | |||||||||||||||
| Total assets under management(1)($ millions) | $ | 125,796 | $ | 124,146 | 1.3 | % | ||||||||||||
| Investors Group | ||||||||||||||||||
| Mutual funds | 62,999 | 60,628 | 3.9 | |||||||||||||||
| Mackenzie | ||||||||||||||||||
| Mutual funds | 42,410 | 41,535 | ||||||||||||||||
| Sub-advisory, institutional and other accounts | 21,855 | 22,831 | ||||||||||||||||
| Total | 64,265 | 64,366 | (0.2 | ) | ||||||||||||||
| Counsel | ||||||||||||||||||
| Mutual funds | 3,080 | 2,957 | 4.2 | |||||||||||||||
| For the three months ended March 31, 2013 | Investors Group | Mackenzie | Counsel | Total(2) | ||||||||||||||
| Mutual Funds and Institutional Sales ($ millions) | ||||||||||||||||||
| Gross sales | $ | 2,034 | $ | 3,278 | $ | 131 | $ | 5,051 | ||||||||||
| Net sales | 376 | 254 | 11 | 554 | ||||||||||||||
| (1) | Total assets under management excluded $4.5 billion of assets sub-advised by Mackenzie on behalf of Investors Group and Investment Planning Counsel ($3.8 billion at March 31, 2012). | |||||||||||||||||
| (2) | Total Gross Sales and Net Sales excluded $392 million and $87 million respectively in accounts sub-advised by Mackenzie on behalf of Investors Group and Investment Planning Counsel. | |||||||||||||||||
Contact Information:
Ron Arnst
Media Relations
(204) 956-3364
ron.arnst@igmfinancial.com
www.igmfinancial.com