Welcome!

News Feed Item

IGM Financial Inc. Reports Fourth Quarter and 2013 Earnings

WINNIPEG, MANITOBA -- (Marketwired) -- 02/14/14 -- Readers are referred to the disclaimer regarding Forward-Looking Statements, Non-IFRS Financial Measures 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 fourth quarter and for the year ended December 31, 2013.

Operating earnings available to common shareholders, excluding other items(1), for the three months ended December 31, 2013 were $198.7 million or 79 cents per share compared to operating earnings available to common shareholders, excluding other items(2), of $183.2 million or 72 cents per share in 2012.

Net earnings available to common shareholders for the three months ended December 31, 2013 were $197.1 million or 78 cents per share compared to net earnings available to common shareholders of $202.0 million or 80 cents per share for the comparative period in 2012.

Operating earnings available to common shareholders, excluding other items(1), for the year ended December 31, 2013 were $763.5 million or $3.02 per share compared to operating earnings available to common shareholders, excluding other items(2), of $746.4 million or $2.92 per share in 2012.

Net earnings available to common shareholders for the year ended December 31, 2013 were $761.9 million or $3.02 per share compared to net earnings available to common shareholders of $758.8 million or $2.97 per share in 2012.

Revenues for the three months ended December 31, 2013 were $702.9 million compared to $632.6 million in the comparative period in 2012. Revenues for the year ended December 31, 2013 were $2.69 billion compared to $2.58 billion a year ago. Expenses were $449.4 million for the fourth quarter of 2013 compared to $400.4 million a year ago and $1.71 billion for the year ended December 31, 2013 compared to $1.62 billion in 2012.

Total assets under management at December 31, 2013 were $131.8 billion. This compared with total assets under management of $120.7 billion at December 31, 2012.

Shareholders' equity at December 31, 2013 was $4.7 billion, compared to $4.4 billion at December 31, 2012. Return on average common equity based on operating earnings for the year ended December 31, 2013 was 17.3%, unchanged from the comparative period in 2012.

(1)  Other items for the three and twelve months ended December 31, 2013 of
     $1.6 million consisted of a net charge of:

--  An after-tax charge of $10.6 million related to restructuring and other
    charges.
--  An after-tax benefit of $9.0 million representing the Company's
    proportionate share of net changes in Great-West Lifeco Inc.'s
    litigation provision.

(2)  Other items for the three and twelve months ended December 31, 2012 of
     $18.8 million and $12.4 million, respectively, consisted of a net
     benefit of:

--  A favourable change in income tax provision estimates of $24.4 million
    related to certain tax filings.
--  An after-tax charge of $5.6 million representing the Company's
    proportionate share of net changes in Great-West Lifeco Inc.'s
    litigation provision.

Other items for the twelve months ended December 31, 2012 also included a
non-cash income tax charge of $6.4 million resulting from increases in
Ontario corporate income tax rates and their effect on the deferred income
tax liability related to indefinite life intangible assets arising from
prior business acquisitions.

Investors Group Operations

"Mutual fund gross sales, up 19% over the same period last year, were the highest level of fourth quarter sales in the history of the company," said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "Our Consultant Network increased to 4,673 in the fourth quarter from 4,518 in the same quarter last year based primarily on strong recruiting results."

Mutual fund sales for the fourth quarter of 2013 were $1.69 billion compared to $1.42 billion in the prior year, and mutual fund net sales for the fourth quarter were $59 million compared to net redemptions of $261 million a year ago.

Mutual fund sales for the twelve months ended December 31, 2013 were $6.67 billion compared to $5.78 billion in the prior year, and mutual fund net sales were $159 million compared to net redemptions of $724 million a year ago.

The twelve month trailing redemption rate (excluding money market funds) was 9.4% at December 31, 2013, compared to 9.7% at September 30, 2013.

Mutual fund assets under management at December 31, 2013 were $68.3 billion compared to $60.6 billion at December 31, 2012.

Mackenzie Operations

Mutual fund sales for the fourth quarter of 2013 were $2.02 billion, an increase of 9.1% compared to $1.85 billion the prior year. Mutual fund net sales for the fourth quarter were $8 million compared to net redemptions of $543 million a year ago.

Mutual fund sales for the year ending December 31, 2013 were $6.70 billion, an increase of 22.0% compared to $5.49 billion the prior year. Mutual fund net redemptions were $487 million compared to net redemptions of $1,974 million a year ago.

Total sales for the fourth quarter of 2013 were $3.14 billion compared to $2.84 billion in the prior year. Total net redemptions for the fourth quarter were $0.91 billion compared to total net redemptions of $1.00 billion a year ago.

Total sales for the year ended December 31, 2013 were $12.36 billion compared to $9.97 billion in the prior year. Total net redemptions were $3.57 billion compared to total net redemptions of $4.24 billion a year ago.

"Solid investment performance, new product introductions and enthusiasm for our global equity offerings have created strong sales momentum," said Jeffrey R. Carney, President and Chief Executive Officer of Mackenzie Financial Corporation. "This is our highest level of fourth quarter mutual fund sales since 2007."

Mackenzie's total assets under management at December 31, 2013 were $65.3 billion compared with total assets under management of $61.5 billion at December 31, 2012. Mutual fund assets under management at December 31, 2013 were $46.0 billion compared to $40.4 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 April 30, 2014 to shareholders of record on March 31, 2014.

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.

Non-IFRS Financial Measures and Additional IFRS Measures

This release contains non-IFRS financial measures and additional IFRS measures. Net earnings available to common shareholders, which is an additional measure in accordance with International Financial Reporting Standards (IFRS), may be subdivided into two components consisting of:

--  Operating earnings available to common shareholders; and
--  Other items, which include the after-tax impact of any item that
    management considers to be of a non-recurring nature or that could make
    the period-over-period comparison of results from operations less
    meaningful.

Terms by which non-IFRS financial measures are identified include but are not limited to "operating earnings available to common shareholders", "operating earnings per share", "operating return on average common equity" and other similar expressions used to provide management and investors with additional measures to assess earnings performance. However, non-IFRS financial measures do not have standard meanings prescribed by IFRS and are not directly comparable to similar measures used by other companies. Please refer to the attached Financial Highlights for the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS.

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 $132 billion in total assets under management as of January 31, 2014. 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 Fourth Quarter 2013 will be held Friday February 14, 2014 at 3:00 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-866 226-1793 or 416-340-2218.

IGM FINANCIAL INC.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Consolidated Statements of Earnings

(unaudited)                             Three months                  Twelve
(in thousands of Canadian                      ended            months ended
 dollars, except shares and              December 31             December 31
 per share amounts)                 2013        2012        2013        2012
----------------------------------------------------------------------------
                                            Restated                Restated

Revenues
  Management fees              $ 475,584   $ 434,691  $1,832,606  $1,766,348
  Administration fees             93,721      84,571     357,535     337,155
  Distribution fees               85,635      80,198     323,045     321,071
  Net investment income and
   other                          17,774      17,540      83,009      80,611
  Proportionate share of
   affiliate's earnings           30,191      15,565      93,827      71,971
                            ------------------------------------------------
                                 702,905     632,565   2,690,022   2,577,156
                            ------------------------------------------------

Expenses
  Commission                     229,384     213,387     886,123     858,248
  Non-commission                 196,763     163,839     730,369     668,553
  Interest                        23,239      23,202      92,150      92,188
                            ------------------------------------------------
                                 449,386     400,428   1,708,642   1,618,989
                            ------------------------------------------------
Earnings before income taxes     253,519     232,137     981,380     958,167
Income taxes                      54,174      27,923     210,626     190,504
                            ------------------------------------------------
Net earnings                     199,345     204,214     770,754     767,663
Perpetual preferred share
 dividends                         2,212       2,212       8,850       8,850
----------------------------------------------------------------------------
Net earnings available to
 common shareholders           $ 197,133   $ 202,002   $ 761,904   $ 758,813
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Average number of common
 shares
  (in thousands)
  - Basic                        252,123     252,520     252,013     254,853
  - Diluted                      253,005     252,862     252,474     255,277

Earnings per share (in
 dollars)
  - Basic                         $ 0.78      $ 0.80      $ 3.02      $ 2.98
  - Diluted                       $ 0.78      $ 0.80      $ 3.02      $ 2.97
----------------------------------------------------------------------------
----------------------------------------------------------------------------

IGM FINANCIAL INC.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Financial Highlights

                                                         As at and for the
                       For the three months                  twelve months
                          ended December 31              ended December 31
                  -------------------------  -----------------------------
(unaudited)            2013     2012 Change        2013      2012   Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Earnings available
 to common
 shareholders ($
 millions)

  Operating
   Earnings (1)    $  198.7 $  183.2    8.5 % $   763.5 $   746.4      2.3 %
  Net Earnings        197.1    202.0   (2.4)      761.9     758.8      0.4
Diluted earnings
 per share
  Operating
   Earnings (1)        0.79     0.72    9.7        3.02      2.92      3.4
  Net Earnings         0.78     0.80   (2.5)       3.02      2.97      1.7
Return on equity
  Operating
   Earnings (1)                                    17.3 %    17.3 %
  Net Earnings                                     17.3 %    17.6 %
Dividends per
 share               0.5375   0.5375      -        2.15      2.15        -
----------------------------------------------------------------------------
Total assets under
 management (2)($
 millions)                                    $ 131,777 $ 120,694      9.2 %
  Investors Group
    Mutual funds                                 68,255    60,595     12.6
  Mackenzie
    Mutual funds                                 46,024    40,394
    Sub-advisory,
     institutional
     and other
     accounts                                    19,291    21,083
  Total                                          65,315    61,477      6.2
  Counsel
    Mutual funds                                  3,406     2,950     15.5

----------------------------------------------------------------------------

Mutual Funds and
 Institutional Sales ($    Investors                                  Total
 millions)                     Group           Mackenzie   Counsel      (4)
                          ----------  -------------------  -------  --------
                                       Mutual
                                        Funds  Total (3)
  For the three months
   ended December 31,
   2013
    Gross sales          $     1,694 $  2,019 $    3,143  $    147 $  4,519
    Net sales
     (redemptions)                59        8       (912)       26     (955)
  For the twelve months
   ended December 31,
   2013
    Gross sales          $     6,668 $  6,700 $   12,363  $    485 $ 17,939
    Net sales
     (redemptions)               159     (487)    (3,566)       52   (3,722)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Non-IFRS Financial Measures:

    2013 operating earnings excluded:
    - An after-tax charge of $10.6 million related to restructuring and
    other charges.
    - An after-tax benefit of $9.0 million, recorded in the fourth quarter,
    representing the Company's proportionate share of net changes in Great-
    West Lifeco Inc.'s litigation provisions.
    2012 operating earnings excluded:
    - A favourable change in income tax provision estimates of $24.4
    million, recorded in the fourth quarter, related to certain tax filings.
    - An after-tax charge of $5.6 million, recorded in the fourth quarter,
    representing the Company's proportionate share of net changes in Great-
    West Lifeco Inc.'s litigation provisions.
    - A non-cash income tax charge of $6.4 million, recorded in the second
    quarter, resulting from increases in Ontario corporate income tax rates
    and their effect on the deferred income tax liability related to
    indefinite life intangible assets arising from prior business
    acquisitions. There is no expectation that the deferred tax liability
    will become payable as the Company has no intention of disposing of
    these assets.

(2) Total assets under management excluded $5.2 billion of assets sub-
    advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel ($4.3 billion at December, 2012).

(3) In the third quarter of 2013, Waddell & Reed Financial, Inc.
    internalized a $2.4 billion mandate previously sub-advised by Mackenzie.

(4) Total Gross Sales and Net Sales for the three months ended December 31,
    2013 excluded $465 million and $128 million respectively in accounts
    sub-advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel.
    Total Gross Sales and Net Sales for the twelve months ended December 31,
    2013 excluded $1.6 billion and $367 million respectively in accounts
    sub-advised by Mackenzie on behalf of Investors Group and Investment
    Planning Counsel.

Contacts:
Ron Arnst
Media Relations
IGM Financial Inc.
(204) 956-3364
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.