Power Corporation of Canada Reports First Quarter 2013 Financial Results and
Readers are referred to the sections entitled "Non-IFRS Financial Measures"
and "Forward-Looking Statements" at the end of thisrelease.
WINNIPEG, May 15, 2013 /CNW Telbec/ - Power Corporation of Canada (TSX: POW)
today reported earnings results for the three months ended March 31, 2013.
FIRST QUARTER RESULTS
Operating earnings attributable to participating shareholders, a non-IFRS
financial measure, for the quarter ended March 31, 2013 were $247 million or
$0.54 per share, compared with $205 million or $0.45 per share in the
corresponding period in 2012, an increase of 20.2% on a per share basis.
Subsidiaries contributed $259 million to Power Corporation's operating
earnings for the quarter ended March 31, 2013, compared with $240 million in
the same period in 2012. Results from corporate activities were a contribution
of $1million, compared with a net charge of $23million in the
corresponding period in2012.
Other items in the quarter, not included in operating earnings, represented a
net charge of $22million. Power Corporation's share of other items at Power
Financial Corporation (Power Financial), a subsidiary, was a charge of $9
million. In addition, other items included a restructuring provision totalling
$13million recorded by Square Victoria Communications Group Inc., a
subsidiary of the Corporation. In the corresponding quarter of 2012, other
items represented a net contribution of $55 million. Additional details on
other items can be found in the sections entitled "Results of Power Financial"
and "Earnings Summary" below.
Net earnings attributable to participating shareholders for the quarter ended
March 31, 2013 were $225 million or $0.49 per share, compared with $260
million or $0.57 per share in the corresponding period in 2012.
RESULTS OF POWER FINANCIAL
Power Financial reported operating earnings attributable to common
shareholders for the quarter ended March 31, 2013 of $407million or $0.57
per share, compared with $371million or $0.52 per share in the corresponding
period in 2012.
Other items, not included in operating earnings, in the first quarter of 2013
were a net charge of $13 million which represented Power Financial's share of
an impairment charge recorded by Pargesa Holding SA in connection with an
investment in GDF Suez by its subsidiary Groupe Bruxelles Lambert. For the
quarter ended March 31, 2012, other items at Power Financial were a
contribution of $83million.
Net earnings attributable to common shareholders for the quarter ended March
31, 2013 were $394 million or $0.55 per share, compared with $454 million or
$0.64 per share in the corresponding quarter of 2012.
At March 31, 2013, Power Corporation held a 65.8% economic interest in Power
Financial. Power Financial's contribution to Power Corporation's operating
earnings was $268 million for the quarter ended March 31, 2013, compared with
$245 million in the same period in 2012.
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 |
|1986 Series - | | |of |
|POW.PR.F |June 21, 2013|July 15, 2013|70% of the average |
| | | |prime rate of two |
| | | |major Canadian |
| | | |chartered banks( )|
|Series A - POW.PR.A|June 21, 2013|July 15, 2013|35¢ |
|Series B - POW.PR.B|June 21, 2013|July 15, 2013|33.4375¢ |
|Series C - POW.PR.C|June 21, 2013|July 15, 2013|36.25¢ |
|Series D - POW.PR.D|June 21, 2013|July 15, 2013|31.25¢ |
|Series G - POW.PR.G|June 21, 2013|July 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 June 28, 2013 to shareholders of record on June 7,
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.
ABOUT POWER CORPORATION
Power Corporation of Canada is a diversified international management and
holding company with interests in companies in the financial services,
communications and other business sectors in North America, Europe and Asia.
To learn more, visit www.powercorporation.com.
(unaudited) Three months ended
March 31, March 31,
2013 2012 ((1))
Contribution to operating earnings from
subsidiaries ((2)) 259 240
Results from corporate activities
Income from investments 31 8
Operating and other expenses (30) (31)
Dividends on non-participating shares (13) (12)
Operating earnings attributable to
participating shareholders 247 205
Other items (see below) (22) 55
Net earnings attributable to participating
shareholders 225 260
Earnings per share (attributable to
- operating earnings 0.54 0.45
- non-operating earnings (0.05) 0.12
- net earnings 0.49 0.57
(unaudited) Three months ended
March 31, March 31,
Pargesa (a Power Financial jointly
controlled company) (9) 55
Square Victoria Communications Group (13)
(1) Effective January 1, 2013, the Corporation adopted revised IAS 19
Employee Benefits. In accordance with the required transitional
Corporation retrospectively applied the revised standard. The 2012
financial information in this report has been restated accordingly.
(2) Includes Power Financial and other subsidiaries of the Corporation.
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 classified 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
and jointly controlled corporations and associates.
However, management uses these financial measures 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- May/15/2013 16:05 GMT
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