CI Financial reports first quarter results: Earnings per share increase 6%; dividend raised 6%

CI Financial reports first quarter results: Earnings per share increase 6%; 
dividend raised 6% 
TSX Symbol: CIX 
TORONTO, May 7, 2013 /CNW/ - CI Financial Corp. ("CI") today released 
unaudited financial results for the quarter ended March 31, 2013. 
 _____________________________________________________________________
|             |Quarter ended|Quarter ended|      |Quarter ended|      |
|             |  March 31,  |December 31, |      |  March 31,  |      |
|             |    2013     |    2012     |  %   |    2012     |  %   |
|HIGHLIGHTS   | ($millions  | ($millions  |change| ($millions  |change|
|             |   except    |   except    |      |   except    |      |
|             |  per share  |  per share  |      |  per share  |      |
|             |  amounts)   |  amounts)   |      |  amounts)   |      |
|_____________|_____________|_____________|______|_____________|______|
|Assets Under |     80,471  |     75,723  |   6  |     73,361  |   10 |
|Management   |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|Average      |             |             |      |             |      |
|Assets Under |     78,810  |     74,323  |   6  |     72,262  |   9  |
|Management   |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|Pre-Tax      |             |             |      |             |      |
|Operating    |      0.59   |      0.58   |   2  |      0.56   |   5  |
|Earnings Per |             |             |      |             |      |
|Share(1)     |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|EBITDA Per   |      0.64   |      0.63   |   2  |      0.62   |   3  |
|Share( 1)    |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|Net Income   |      98.5   |      95.0   |   4  |      94.6   |   4  |
|_____________|_____________|_____________|______|_____________|______|
|Earnings Per |      0.35   |      0.34   |   3  |      0.33   |   6  |
|Share        |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|SG&A Expenses|     39 bps  |     39 bps  |   0  |     40 bps  |  (3) |
|_____________|_____________|_____________|______|_____________|______|
|Dividends    |             |             |      |             |      |
|Recorded Per |      0.250  |      0.240  |   4  |      0.235  |   6  |
|Share        |             |             |      |             |      |
|_____________|_____________|_____________|______|_____________|______|
|Net Debt(2)  |      503.6  |      526.5  |  (4) |      646.7  | (22) |
|_____________|_____________|_____________|______|_____________|______|
|Gross Sales  |      3,804  |      3,513  |   8  |      2,641  |   44 |
|_____________|_____________|_____________|______|_____________|______|
|Net Sales    |      1,147  |       724   |   58 |       160   |  615 |
|_____________|_____________|_____________|______|_____________|______| 


      (1)  Pre-Tax Operating Earnings and EBITDA (earnings before
           interest, taxes, depreciation and amortization) are not
           standardized earnings
           measures prescribed by IFRS; however, management believes
           that most of its shareholders, creditors, other stakeholders
           and
           investment analysts prefer to include the use of these
           performance measures in analyzing CI's results. CI defines
           pre-tax operating
           earnings as income before income taxes less redemption fee
           revenue, non-recurring items, performance fees and
           investment gains,
           plus amortization of deferred sales commissions (DSC) and
           fund contracts. CI's method of calculating these measures
           may not be
           comparable to similar measures presented by other companies.
      (2 ) Net of cash and marketable securities not required for
           regulatory working capital.

For the quarter ended March 31, 2013, average assets under management reached 
a record high of $78.8 billion, an increase of 9% from the same quarter of the 
previous year and an increase of 6% from the prior quarter. CI also had its 
highest level of first quarter gross sales since 2000 and the highest level of 
first quarter net sales since 2006. Gross sales of funds were $3.8 billion 
during the quarter, an increase of 44% year over year, while net sales 
increased 615% to $1.1 billion.

At March 31, 2013, CI also reached a record level of assets under management 
for a quarter-end at $80.5 billion, up 10% from $73.4 billion at March 31, 
2012. In comparison, the S&P/TSX Composite and the DEX Universe Bond indexes 
increased 6% and 5%, respectively, over the same period.

For the first quarter of 2013, CI reported earnings per share of $0.35, up 6% 
from $0.33 per share in the first quarter of 2012 and up 3% from $0.34 per 
share in the last quarter of 2012. In addition, CI reported EBITDA per share 
for the first quarter of 2013 of $0.64, a 3% increase from the first quarter 
of 2012 and a 2% increase from the prior quarter. Pre-tax operating earnings 
per share, which include adjustments for non-recurring items, were up 5% from 
the first quarter of 2012 and up 2% from the prior quarter.

CI successfully controlled discretionary spending, keeping expenses in line 
with the growth in assets under management. Selling, general and 
administrative (SG&A) expenses as a percentage of average assets under 
management were 0.39% in the first quarter of 2013, down slightly from 0.40% 
in the first quarter of the prior year.

CI generated $98.6 million in free cash flow during the quarter ended March 
31, 2013 compared to $98.5 million in the first quarter of 2012. CI's cash 
flow facilitated a reduction in net debt by $22.9 million and the payment of 
$69.3 million in dividends. As at April 30, 2013, CI had 283,323,896 shares 
outstanding.

"It has been a great start to 2013 for CI Financial," said Stephen A. 
MacPhail, CI President and Chief Executive Officer. "Our sales have been the 
best since 2000, with retail net sales so far this year totalling $1.6 
billion, and our assets under management have reached $82 billion, a record 
for CI. The performance of our fund managers has been exemplary and while we 
have invested heavily in the staff and service elements of our business as 
well as advertising the CI Financial and Assante brands, we were able to 
reduce our SG&A spending in basis points from the prior year."

CI's assets under management at May 6, 2013 of $82 billion were up 4% from the 
average of $78.8 billion for the first quarter of 2013. The robust performance 
led the Board of Directors to increase CI's monthly dividend by $0.005 per 
share to $0.09 per share payable on each of June 14, July 15 and August 15, 
2013 to shareholders of record on May 31, June 30 and July 31, 2013, 
respectively. The monthly dividend represents a yield of 3.7% on CI's closing 
share price of $29.23 on May 6, 2013.

For detailed financial statements for the quarter ended March 31, 2013, 
including Management's Discussion and Analysis, please refer to CI's website 
at www.cifinancial.com under Reports, or contact investorrelations@ci.com.

Analysts' Conference Call 
CI will hold a conference call with analysts today at 4 p.m. Eastern time. 
Speaking on the call will be Mr. MacPhail and Douglas Jamieson, Senior 
Vice-President and Chief Financial Officer. The conference call and a slide 
presentation will be accessible through a webcast at www.ci.com/q1. 
Alternatively, investors may listen to the discussion by dialling 
1-866-696-5910 or (416) 340-2217 (passcode: 1047993).

The call will be available for playback later in the day until May 21, 2013 at 
(905) 694-9451 or 1-800-408-3053 (passcode: 9604919). The webcast will be 
archived at www.ci.com/q1.

CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth 
management company. CI offers a broad range of investment products and 
services, including an industry-leading selection of investment funds, and is 
on the Web 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.

Stephen A. MacPhail President and Chief Executive Officer CI Financial Corp. 
(416) 364-1145

SOURCE: CI Financial Corp.

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CO: CI Investments Inc.
ST: Ontario
NI: FIN FND ERN CONF 

-0- May/07/2013 15:37 GMT


 
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