Power Corporation of Canada Reports Fourth Quarter and 2012 Financial Results
Readers are referred to the sections entitled "Non-IFRS Financial Measures"
and "Forward-Looking Statements" at the end of thisrelease.
MONTREAL, March 13, 2013 /CNW Telbec/ - Power Corporation of Canada (TSX: POW)
today reported earnings results for the fourth quarter and the year ended
December 31, 2012.
FOURTH QUARTER RESULTS
Operating earnings attributable to participating shareholders, a non-IFRS
financial measure, for the quarter ended December31, 2012 were $222 million
or $0.48 per share, compared with $241 million or $0.52 per share in the
corresponding period in 2011.
Subsidiaries contributed $268 million to Power Corporation's operating
earnings for the quarter ended December 31, 2012, compared with $279 million
in the same period in 2011. Results from corporate activities were a net
charge of $33million, compared with a net charge of $28million in the
corresponding period in2011.
Other items in the quarter, not included in operating earnings, represented a
net charge of $140million. Power Corporation's share of other items at Power
Financial Corporation (Power Financial), a subsidiary, was $84 million. In
addition, other items included impairment charges totalling $56million
recorded by Square Victoria Communications Group Inc., a subsidiary of the
Corporation. In the corresponding quarter of 2011, other items represented a
net contribution of $73 million. Additional details on other items can be
found in this news release and in the Earnings Summary below.
Net earnings attributable to participating shareholders for the quarter ended
December 31, 2012 were $82 million or $0.18 per share, compared with $314
million or $0.68 per share in the corresponding period in 2011.
For the year ended December 31, 2012, operating earnings attributable to
participating shareholders were $963 million or $2.09 per share, compared with
$1,152 million or $2.50 per share in 2011.
Subsidiaries contributed $1,108 million to Power Corporation's operating
earnings for the year ended December 31, 2012, compared with $1,150 million in
2011. Results from corporate activities represented a net charge of
$95million, compared with a net contribution of $43million in 2011.
Other items, not included in operating earnings, were a net charge of $131
million in 2012, compared with a net charge of $77 million in 2011. Other
items include those recorded by Power Financial totalling $39 million
described below, the impairment charge of $56 million at Square Victoria
Communications Group Inc. and an impairment charge of $36 million on the
Corporation's investment in CITIC Pacific Limited recorded in the third
quarter of 2012. Additional details on other items can be found in this news
release and in the Earnings Summary below.
Net earnings attributable to participating shareholders for the year ended
December 31, 2012 were $832million or $1.81 per share, compared with $1,075
million or $2.34 per share in 2011.
RESULTS OF POWER FINANCIAL CORPORATION
Power Financial reported operating earnings attributable to common
shareholders for the quarter ended December 31, 2012 of $406million or $0.57
per share, compared with $422million or $0.60 per share in the corresponding
period in 2011.
Other items, not included in operating earnings, for the fourth quarter of
2012 were a net charge of $128 million, and were comprised of a charge
relating to a litigation provision adjustment reported by Great-West Lifeco
Inc., a subsidiary of Power Financial, and the share of Pargesa's impairment
charge on its subsidiary's (Groupe Bruxelles Lambert - GBL) investment in GDF
Suez. For the quarter ended December 31, 2011, other items at Power Financial
were a net contribution of $111 million.
Net earnings attributable to common shareholders for the quarter ended
December31, 2012 were $278 million or $0.39 per share, compared with $533
million or $0.75 per share in the corresponding quarter of 2011.
Operating earnings attributable to common shareholders for the year ended
December 31, 2012 were $1,686 million or $2.38 per share, compared with $1,729
million or $2.44 per share in 2011.
Other items, not included in operating earnings, at Power Financial for the
year ended December 31, 2012 were a net charge of $60 million. In addition to
the items described above, other items in 2012 included a share of the gains
realized by GBL in the first quarter on the partial disposal of its interest
in Pernod Ricard and on the disposal of its interest in Arkema, and a share of
the amount recorded by IGM Financial Inc., a subsidiary of Power Financial,
relating to changes in the status of certain income tax filings. Other items
for the year ended December31, 2011 were a net charge of $7 million.
Net earnings attributable to common shareholders of Power Financial for the
year ended December 31, 2012 were $1,626 million or $2.30 per share, compared
with $1,722million or $2.43 per share in 2011.
At December 31, 2012, Power Corporation held a 66.0% economic interest in
Power Financial. Power Financial's contribution to Power Corporation's
operating earnings was $268 million for the quarter ended December 31, 2012,
compared with $279 million in the same period in 2011. For the year ended
December 31, 2012, Power Financial's contribution to Power Corporation's
operating earnings was $1,114 million, compared with $1,142 million in 2011.
DIVIDENDS ON NON-PARTICIPATING PREFERRED SHARES
The Board of Directors today declared quarterly dividends on the Corporation's
preferred shares, as follows:
|SERIES - STOCK | | | |
|SYMBOL |RECORD DATE |PAYMENT DATE |AMOUNT |
| | | |At a floating rate|
| | | |equal to one |
| | | |quarter of 70% of |
| | | |the average prime |
| | | |rate of two major |
|1986 Series - | | |Canadian chartered|
|POW.PR.F |March 25, 2013|April 15, 2013|banks( ) |
|Series A - POW.PR.A|March 25, 2013|April 15, 2013|35¢ |
|Series B - POW.PR.B|March 25, 2013|April 15, 2013|33.4375¢ |
|Series C - POW.PR.C|March 25, 2013|April 15, 2013|36.25¢ |
|Series D - POW.PR.D|March 25, 2013|April 15, 2013|31.25¢ |
|Series G - POW.PR.G|March 25, 2013|April 15, 2013|35¢ |
() In accordance with the articles of the Corporation
DIVIDENDS ON PARTICIPATING SHARES
The Board of Directors also declared a quarterly dividend of 29 cents per
share on the Participating Preferred Shares and the Subordinate Voting Shares
of the Corporation, payable March 28, 2013 to shareholders of record March 22,
For purposes of the Income Tax Act (Canada) and any similar provincial
legislation, all of the above dividends on the Corporation's preferred shares
(including the Participating Preferred Shares) and Subordinate Voting Shares
are eligible dividends.
(unaudited) Twelve months ended Three months ended
December December December 31, December 31,
31, 31, 2012 2011
Contribution to 1,108 1,150 268 279
Income from 27 159 (1) -
Operating and (122) (116) (32) (28)
Dividends on (50) (41) (13) (10)
Operating 963 1,152 222 241
Other items (see (131) (77) (140) 73
Net earnings 832 1,075 82 314
- operating 2.09 2.50 0.48 0.52
- non-operating (0.28) (0.16) (0.30) 0.16
- net earnings 1.81 2.34 0.18 0.68
(unaudited) Twelve months ended Three months ended
December December December 31, December 31,
31, 31, 2012 2011
share of Power
Lifeco (65) 58 (65) 58
IGM ((2)) 7 23 10 12
Pargesa 19 (86) (29) 3
(39) (5) (84) 73
Group (56) (56)
Impairment charge (36) (72)
on CITIC Pacific
(131) (77) (140) 73
(1) Includes Power Financial and other subsidiaries of the Corporation.
(2) The gain on the disposal of M.R.S. Trust Company and M.R.S. Inc. is
an other item not included in operating earnings. However, earnings
from discontinued operations are included in operating earnings.
Non-IFRS Financial Measures
In analyzing the financial results of the Corporation and consistent with the
presentation in previous years, net earnings attributable to participating
shareholders are subdivided into the following components:
-- operating earnings attributable to participating shareholders;
-- 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 Power Corporation,
and believes that they provide additional meaningful information to readers in
their analysis of the results of the Corporation.
Operating earnings attributable to participating 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.
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
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 previous 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.
Mr. Stéphane Lemay Vice-President, General Counsel and Secretary 514-286-7400
SOURCE: Power Corporation of Canada
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-0- Mar/13/2013 18:07 GMT
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