Welcome!

News Feed Item

IGM Financial Inc. Reports First Quarter Earnings

WINNIPEG, MANITOBA -- (Marketwired) -- 05/09/14 -- 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 2014.

Net earnings available to common shareholders for the three months ended March 31, 2014 were $194.4 million or 77 cents per share compared to net earnings available to common shareholders of $180.5 million or 72 cents per share for the comparative period in 2013.

Revenues for the three months ended March 31, 2014 were $714.8 million compared to $652.7 million for the comparative period in 2013. Expenses were $461.7 million for the first quarter of 2014 compared to $418.7 million a year ago.

Total assets under management at March 31, 2014 were $137.3 billion compared to $125.8 billion at March 31, 2013. Mutual fund assets under management at March 31, 2014 were $122.5 billion compared to $108.5 billion at March 31, 2013.

Shareholders' equity at March 31, 2014 was $4.8 billion, compared to $4.5 billion at March 31, 2013. Return on average common equity for the three months ended March 31, 2014 was 16.9% compared to 16.8% for the comparative period in 2013.

Investors Group Operations

"Assets under management, which reached record highs during the quarter, were $70.9 billion at March 31, 2014," said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. "Our Consultant Network increased for the fourth consecutive quarter from 4,673 at the end of 2013 to 4,731 on March 31, 2014 - an all time high in the history of Investors Group."

Mutual fund sales for the first quarter of 2014 were $2.23 billion compared to $2.03 billion in the prior year, and mutual fund net sales for the first quarter were $410 million compared to net sales of $376 million a year ago.

The twelve month trailing redemption rate (excluding money market funds) was 9.3% at March 31, 2014, compared to 9.4% at December 31, 2013.

Mutual fund assets under management at March 31, 2014 were $70.9 billion compared to $63.0 billion at March 31, 2013.

Mackenzie Operations

Mutual fund sales for the first quarter of 2014 were $2.37 billion, an increase of 23.2% compared to $1.93 billion in the prior year. Mutual fund net sales for the first quarter were $354 million compared to net sales of $99 million a year ago.

Total sales for the first quarter of 2014 were $3.87 billion compared to $3.28 billion in the prior year. Total net sales for the first quarter were $782 million compared to total net sales of $254 million a year ago.

"This is our highest level of first quarter mutual fund net sales since 2006," said Jeffrey R. Carney, President and Chief Executive Officer of Mackenzie Financial Corporation. "Solid investment performance and demand for global equities, managed solutions and flexible income products have created strong sales momentum."

Mackenzie's total assets under management at March 31, 2014 were $68.4 billion compared to $64.3 billion at March 31, 2013. Mutual fund assets under management at March 31, 2014 were $48.1 billion compared to $42.4 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 July 31, 2014 to shareholders of record on June 30, 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.

Additional IFRS Measures

This release contains additional IFRS measures. Terms by which additional IFRS measures are identified include "earnings before income taxes" 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 $138 billion in total assets under management as of April 30, 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 First Quarter 2014 will be held Friday May 9, 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 ended March 31
(in thousands of Canadian dollars, except
 shares and per share amounts)                          2014            2013
----------------------------------------------------------------------------

Revenues
  Management fees                                  $ 485,766       $ 442,870
  Administration fees                                 95,223          85,585
  Distribution fees                                   92,411          81,445
  Net investment income and other                     22,002          23,465
  Proportionate share of affiliate's
   earnings                                           19,444          19,333
                                            --------------------------------
                                                     714,846         652,698
                                            --------------------------------

Expenses
  Commission                                         243,169         218,029
  Non-commission                                     195,777         177,898
  Interest                                            22,749          22,749
                                            --------------------------------
                                                     461,695         418,676
                                            --------------------------------

Earnings before income taxes                         253,151         234,022
Income taxes                                          56,490          51,298
                                            --------------------------------

Net earnings                                         196,661         182,724
Perpetual preferred share dividends                    2,213           2,213
----------------------------------------------------------------------------

Net earnings available to common
 shareholders                                      $ 194,448       $ 180,511
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Average number of common shares
(in thousands)
  - Basic                                            252,368         251,971
  - Diluted                                          253,413         252,455

Earnings per share (in dollars)
  - Basic                                             $ 0.77          $ 0.72
  - Diluted                                           $ 0.77          $ 0.72
----------------------------------------------------------------------------
----------------------------------------------------------------------------



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

As at and for the three months ended March 31
(unaudited)                                        2014      2013    Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings available to
 common shareholders
 ($ millions)                                   $ 194.4   $ 180.5       7.7%

Diluted earnings per
 share                                             0.77      0.72       6.9

Return on equity                                   16.9%     16.8%

Dividends per share                              0.5375    0.5375         -

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

Total assets under
 management (1)
 ($ millions)                                 $ 137,315 $ 125,796       9.2%
  Investors Group
    Mutual funds                                 70,877    62,999      12.5
  Mackenzie
      Mutual funds                               48,059    42,410
      Sub-advisory,
      institutional and
      other accounts                             20,308    21,855
    Total                                        68,367    64,265       6.4
  Counsel
    Mutual funds                                  3,587     3,080      16.5

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


For the three months      Investors
 ended March 31, 2014         Group           Mackenzie   Counsel Total (2)
                         ---------------------------------------------------
Mutual Funds and
 Institutional Sales                   Mutual
 ($ millions)                           Funds     Total

      Gross sales           $ 2,229   $ 2,374   $ 3,866     $ 157   $ 5,718
      Net sales                 410       354       782        40     1,102

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

(1)  Total assets under management excluded $5.5 billion of assets sub-
     advised by Mackenzie on behalf of Investors Group and Investment
     Planning Counsel ($4.5 billion at March 31, 2013).
(2)  Total Gross Sales and Net Sales for the three months ended March 31,
     2014 excluded $534 million and $130 million
     respectively in accounts sub-advised by Mackenzie on behalf of
     Investors Group and Investment Planning Counsel.

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
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...