Power Financial Corporation Reports 2012 Third Quarter Financial Results and Dividends

Power Financial Corporation Reports 2012 Third Quarter Financial Results and 
Dividends 
Readers are referred to the sections entitled "Forward-Looking Statements" and 
"Non-IFRS Financial Measures" at the end of this release. 
TORONTO, Nov. 14, 2012 /CNW Telbec/ - Power Financial Corporation (TSX: PWF) 
today reported operating earnings attributable to common shareholders for the 
nine-month period ended September 30, 2012 of $1,280million or $1.80 per 
share, compared with $1,307 million or $1.84 per share in the corresponding 
period in 2011. 
For the nine-month period ended September 30, 2012, other items represented a 
net contribution of $68million mainly composed of the Corporation's share of 
the gains realized by Groupe Bruxelles Lambert in the first quarter on the 
partial disposal of its interest in Pernod Ricard ($46million) and the 
disposal of its interest in Arkema ($43 million), as previously disclosed. 
These gains were partially offset in the second quarter by the Corporation's 
share ($4 million) of a non-cash income tax charge recorded by IGM Financial 
Inc. (IGM) resulting from increases in Ontario corporate income tax rates and 
the Corporation's share of non-operating earnings of Pargesa Holding SA 
(Pargesa) ($17million), mainly composed of a charge for goodwill impairment 
and restructuring charges recorded by Lafarge SA. 
For the nine-month period ended September 30, 2011, other items represented a 
net charge of $118 million and consisted mainly of the Corporation's share 
($133 million) of Pargesa's impairment charge recorded in the third quarter on 
its indirect investment in Lafarge SA. 
Taking into account these other items, net earnings attributable to common 
shareholders for the nine-month period ended September 30, 2012 were 
$1,348million or $1.90 per share, compared with $1,189million or $1.68 per 
share in the corresponding period in2011. 
THIRD QUARTER RESULTS 
For the quarter ended September 30,2012, operating earnings attributable to 
common shareholders were $460 million or $0.65 per share, compared with $428 
million or $0.60 per share in the third quarter of2011. There were no other 
items in the quarter, compared with a net charge of $116 million in the 
corresponding period in 2011, as described above. 
As a result, net earnings attributable to common shareholders for the quarter 
ended September 30, 2012 were $460million or $0.65 per share, compared with 
$312million or $0.44 per share in the corresponding period in 2011. 
RESULTS OF SUBSIDIARIES AND PARJOINTCO 
GREAT-WEST LIFECO INC.
For the nine-month period ended September 30, 2012, Great-West Lifeco Inc. 
(Lifeco) reported net earnings attributable to common shareholders of $1,462 
million or $1.539per share, compared with $1,398 million or $1.473per 
share in the corresponding period in 2011. 
For the quarter ended September 30, 2012, Lifeco reported net earnings 
attributable to common shareholders of $520million or $0.547 per share, 
compared with $457 million or $0.481 per share in the corresponding period of 
2011. 
Lifeco's contribution to Power Financial's operating earnings was $998 million 
for the nine-month period ended September 30, 2012, compared with $956 million 
for the corresponding period in 2011. For the quarter ended September 30, 
2012, Lifeco's contribution to Power Financial's operating earnings was $356 
million, compared with $312 million in the same period in 2011. 
IGM FINANCIAL INC.
For the nine-month period ended September 30, 2012, IGM reported operating 
earnings available to common shareholders of $566 million or $2.21 per share, 
compared with $637million or $2.46 per share in the same period in 2011. 
For the quarter ended September 30, 2012, IGM reported operating earnings 
available to common shareholders of $187 million or $0.73per share, compared 
with $213million or $0.82 per share in the same period in 2011. 
IGM's contribution to Power Financial's operating earnings was $327 million 
for the nine-month period ended September 30, 2012, compared with $367 million 
for the corresponding period in 2011. For the quarter ended September 30, 
2012, IGM's contribution to Power Financial's operating earnings was $109 
million, compared with $121 million in the same period in 2011. 
PARJOINTCO N.V.
Power Financial held a 50% interest in Parjointco N.V., which in turn held a 
56.5% equity interest in Pargesa at September 30, 2012. 
For the nine-month period ended September 30, 2012, Pargesa reported operating 
earnings of SF322million, compared with operating earnings of SF319million 
in the corresponding period in 2011. For the quarter ended September 30, 2012, 
operating earnings were SF144 million, compared with SF109 million in the 
corresponding period of 2011. 
Pargesa's contribution to Power Financial's operating earnings, expressed in 
Canadian dollars, was $95 million for the nine-month period ended September 
30, 2012, compared with a contribution of $103million in the corresponding 
period in 2011. For the quarter ended September 30, 2012, Pargesa's 
contribution to Power Financial's operating earnings was $41million, 
compared with a contribution of $36 million in the corresponding period in 
2011. 
DIVIDENDS ON PREFERRED SHARES
The Board of Directors today declared quarterly dividends on the Corporation's 
preferred shares, as follows: 
 ____________________________________________________________________
|SERIES - STOCK|RECORD DATE     |PAYMENT DATE     |AMOUNT            |
|SYMBOL        |                |                 |                  |
|______________|________________|_________________|__________________|
|              |                |                 |At a floating rate|
|              |                |                 |equal to one      |
|              |                |                 |quarter of 70% of |
|Series A -    |January 25, 2013|February 15, 2013|the average prime |
|PWF.PR.A      |                |                 |rate              |
|              |                |                 |of two major      |
|              |                |                 |Canadian chartered|
|              |                |                 |banks([1])        |
|______________|________________|_________________|__________________|
|Series D -    |January 10, 2013|January 31, 2013 |34.375¢           |
|PWF.PR.E      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series E -    |January 10, 2013|January 31, 2013 |32.8125¢          |
|PWF.PR.F      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series F -    |January 10, 2013|January 31, 2013 |36.875¢           |
|PWF.PR.G      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series H -    |January 10, 2013|January 31, 2013 |35.9375¢          |
|PWF.PR.H      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series I -    |January 10, 2013|January 31, 2013 |37.50¢            |
|PWF.PR.I      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series K -    |January 10, 2013|January 31, 2013 |30.9375¢          |
|PWF.PR.K      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series L -    |January 10, 2013|January 31, 2013 |31.875¢           |
|PWF.PR.L      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series M -    |January 10, 2013|January 31, 2013 |37.50¢            |
|PWF.PR.M      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series O -    |January 10, 2013|January 31, 2013 |36.25¢            |
|PWF.PR.O      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series P -    |January 10, 2013|January 31, 2013 |27.50¢            |
|PWF.PR.P      |                |                 |                  |
|______________|________________|_________________|__________________|
|Series R -    |January 10, 2013|January 31, 2013 |34.375¢           |
|PWF.PR.R      |                |                 |                  |
|______________|________________|_________________|__________________| 
([1]) In accordance with the articles of the Corporation 
DIVIDEND ON COMMON SHARES
The Board of Directors also declared a quarterly dividend of 35 cents per 
share on the Corporation's common shares payable February 1, 2013 to 
shareholders of record December31,2012. 
For purposes of the Income Tax Act (Canada) and any similar provincial 
legislation, all of the above dividends on the Corporation's preferred and 
common shares are eligible dividends. 
SUPPLEMENTARY INFORMATION 
EARNINGS SUMMARY - CONDENSED SUPPLEMENTARY STATEMENTS OF EARNINGS 
The following table shows a reconciliation of non-IFRS([1]) financial measures 
used herein for the periods indicated, with the reported results in accordance 
with IFRS for net earnings attributable to common shareholders and earnings 
per share. 


                                                         
                    Nine months ended              Three months ended
                September   September   September 30,   September 30,
                      30,         30,            2012            2011
                     2012        2011

Contribution to                                                      
operating
earnings from
subsidiaries
and investment
in associate

  Lifeco              998         956             356             312

  IGM                 327         367             109             121

  Pargesa              95         103              41              36
                    1,420       1,426             506             469

Results from         (53)        (41)            (17)            (15)
corporate
activities

Dividends on         (87)        (78)            (29)            (26)
perpetual
preferred
shares

Operating           1,280       1,307             460             428
earnings
attributable to
common
shareholders

Other items            68       (118)               -           (116)

Net earnings        1,348       1,189             460             312
attributable to
common
shareholders

Earnings per                                                         
share
(attributable
to common
shareholders)

  - operating        1.80        1.84            0.65            0.60
  earnings

  -                  0.10      (0.16)               -          (0.16)
  non-operating
  earnings

  - net              1.90        1.68            0.65            0.44
  earnings

OTHER ITEMS

The following table provides details on other items for the periods indicated:
                                                        
                   Nine months ended              Three months ended
               September   September   September 30,   September 30,
                     30,         30,            2012            2011
                    2012        2011

Share of IGM's                                                      
other items

  Non-cash           (4)                                            
  income tax
  charge

  Changes in                      17                              17
  the status
  of certain
  income tax
  filings

Share of                                                            
Pargesa's
other items

  Impairment                   (133)                           (133)
  charge

  Gain on             46                                            
  partial
  disposal of
  Pernod
  Ricard

  Gain on             43                                            
  disposal of
  Arkema

  Other             (17)         (2)                                
                      68       (118)               -           (116)

Forward-Looking Statements
Certain statements in this News Release, other than statements of historical 
fact, are forward-looking statements based on certain assumptions and reflect 
the Corporation's current expectations, or with respect to disclosure 
regarding the Corporation's public subsidiaries, reflect such subsidiaries' 
disclosed current expectations. Forward-looking statements are provided for 
the purposes of assisting the reader in understanding the Corporation's 
financial performance, financial position and cash flows 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 and the reader is 
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 Corporation and its subsidiaries, 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".

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 factors, 
many of which are beyond the Corporation's and its subsidiaries' control, 
affect the operations, performance and results of the Corporation 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, business 
competition, operational and reputational risks, technological change, changes 
in government regulation and legislation, changes in tax laws, unexpected 
judicial or regulatory proceedings, catastrophic events, the Corporation's and 
its subsidiaries' ability to complete strategic transactions, integrate 
acquisitions and implement other growth strategies, and the Corporation's and 
its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned to consider these and other factors, uncertainties and 
potential events carefully and not to put undue reliance on forward-looking 
statements. Information contained in forward-looking statements is based upon 
certain material assumptions that were applied in drawing a conclusion or 
making a forecast or projection, including management's perceptions of 
historical trends, current conditions and expected future developments, as 
well as other considerations that are believed to be appropriate in the 
circumstances, including that the list of factors in the prior paragraph, 
collectively, are not expected to have a material impact on the Corporation 
and its subsidiaries. While the Corporation considers these assumptions to be 
reasonable based on information currently available to management, they may 
prove to be incorrect.

Other than as specifically required by applicable Canadian law, the 
Corporation undertakes no obligation to update any forward-looking statement 
to reflect events or circumstances after the date on which such statement is 
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 Corporation's 
business and material factors or assumptions on which information contained in 
forward-looking statements is based is provided in its disclosure materials, 
including its most recent Management's Discussion and Analysis and Annual 
Information Form, filed with the securities regulatory authorities in Canada 
and available at www.sedar.com.

Non-IFRS Financial Measures
In analyzing the financial results of the Corporation and consistent with the 
presentation in previous years, net earnings attributable to common 
shareholders are subdivided into the following components:
    --  operating earnings attributable to common shareholders; and
    --  other items or non-operating earnings, 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, and also include the Corporation's share of any
        such item presented in a comparable manner by its subsidiaries.

Management has used these financial measures for many years in its 
presentation and analysis of the financial performance of PowerFinancial, 
and believes that they provide additional meaningful information to readers in 
their analysis of the results oftheCorporation.

Operating earnings attributable to common shareholders and operating earnings 
per share are non-IFRS financial measures that do not have a standard meaning 
and may not be comparable to similar measures used by other entities.

([1] )IFRS refers to International Financial Reporting Standards.



Mr. Stéphane Lemay Vice-President, General Counsel and Secretary 514-286-7400

SOURCE: POWER FINANCIAL CORPORATION

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CO: POWER FINANCIAL CORPORATION
ST: Quebec
NI: FIN ERN DIV FIN 

-0- Nov/14/2012 13:46 GMT


 
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