CI Financial reports first quarter results

TSX Symbol: CIX

TORONTO, May 10, 2018 /CNW/ - CI Financial Corp. ("CI") today released unaudited financial results for the quarter ended March 31, 2018.

QUARTERLY RESULTS1 (in $millions except for per share data)

Quarter ended

March 31, 2018

Quarter ended

March 31, 2017

%
change

Average Assets Under Management

141,870

119,423

19

Net Income

159.0

146.5

9

Earnings Per Share

0.59

0.55

7

Free Cash Flow2

166.9

153.8

9

 

OTHER QUARTERLY METRICS

Quarter ended

March 31, 2018

Quarter ended

March 31, 2017

%
change

Dividends Paid Per Share (in $)

0.3525

0.3450

2

Long-Term Debt (in $millions; including current portion)

1,366.3

864.8

58

Net Debt (in $millions)2

1,053.2

673.5

56

SG&A Expenses3

38.7 bps

36.7 bps

5

Return on Equity4

39.3%

38.3%

n/a



1

All results are net of non-controlling interest, and reported in Canadian dollars.

2

Free cash flow and net debt are not standardized measures prescribed by IFRS; however, CI believes that these financial measures provide information that is useful to investors in understanding CI's performance and facilitate a comparison of quarterly and full-year results from period to period. These non-IFRS measures and reconciliations to IFRS, where necessary, are included in Management's Discussion and Analysis available at www.cifinancial.com.

3

As a percentage of average assets under management.

4

Trailing 12 months, calculated using adjusted net income, a non-IFRS measure. A reconciliation to IFRS is included in Management's Discussion and Analysis.

 

CI reported net income of $159.0 million ($0.59 per share) for the first quarter of 2018, up 9% from $146.5 million ($0.55 per share) for the same quarter of 2017.

"We are pleased with CI's results for the quarter, with earnings per share growing 7% year over year and free cash flow increasing by 9% against a backdrop of increased market volatility," said Peter W. Anderson, CI Chief Executive Officer.

"During the quarter, we continued to execute on various strategic initiatives throughout the company, including plans to enhance our product lineup and services to advisors and investors. Most notably, the integration of Sentry Investments is proceeding ahead of schedule."

Average assets under management were $141.9 billion for the quarter ended March 31, 2018, down slightly from the quarter ended December 31, 2017 and up 19% from the quarter ended March 31, 2017. The year-over-year increase was primarily due to strong market performance over the past 12 months and the acquisition of Sentry Investments Corp. ("Sentry") on October 2, 2017. At March 31, 2018, CI's assets under management were $139.2 billion, up $18.5 billion from $120.7 billion at March 31, 2017.

CI's Canadian business, excluding products closed to new investors, had $4.9 billion in gross sales and $1.2 billion in net redemptions, consisting of $1.6 billion in retail net redemptions and $0.4 billion in institutional net sales. Total gross sales improved by $0.6 billion from the same quarter last year, and management continues to focus on developing and executing strategies to improve sales going forward. CI's international business had a strong quarter with $200 million in net sales.

Selling, general and administrative (SG&A) expenses for the first quarter of 2018 were $135.2 million compared to $108.0 million in the same quarter of 2017. The increase in SG&A was primarily due to the additions of Sentry and BBS Securities Inc. as well as strategic investments in CI's business.

CI generated $166.9 million in free cash flow during the quarter ended March 31, 2018, compared to $153.8 million in the same period of 2017. CI repurchased $155.6 million of shares and paid $95.4 million in dividends during the first quarter of 2018. As at April 30, 2018, CI had 265,276,173 shares outstanding.

The Board of Directors declared a monthly cash dividend of $0.1175 per share, payable on each of June 15, 2018, July 13, 2018 and August 15, 2018 to shareholders of record on May 31, 2018, June 30, 2018 and July 31, 2018, respectively. The monthly dividend represented a yield of 5.4% on CI's closing share price of $26.29 on May 9, 2018.

For detailed financial statements for the quarter ended March 31, 2018, including Management's Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to CI's website at www.cifinancial.com under Financial Information, or contact investorrelations@ci.com.

Analysts' Conference Call
CI will hold a conference call with analysts today at 4 p.m. Eastern Time, led by Chief Executive Officer Peter Anderson and Chief Financial Officer Douglas Jamieson. The call and a slide presentation will be accessible through a webcast by visiting www.cifinancial.com.  Alternatively, investors may listen to the discussion by dialing 1-800-806-5484 or (416) 340-2217 (Passcode: 7030080#). 

A replay of the call will be available until May 24, 2018 at 11:59 p.m. at 1-800-408-3053 or (905) 694-9451 (Passcode: 3339016#). The webcast will be archived in the Financial Information section of www.cifinancial.com.

CI Financial Corp. (TSX: CIX) is an independent Canadian company offering global asset management and wealth management advisory services. Its primary operating businesses are CI Investments Inc., Sentry Investments Inc., Assante Wealth Management (Canada) Ltd., Stonegate Private Counsel, Grant Samuel Funds Management Pty Ltd. of Australia, First Asset Investment Management Inc., and BBS Securities Inc. Further information is available at www.cifinancial.com.

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.