Stock Name: POW
Amount: CAD 0.29
Announcement Date: 14/03/2012
Record Date: 21/03/2012
Dividend Detail:
Readers are referred to the sections entitled "Forward-looking
Statements" and "Non-IFRS Financial Measures" at the end of
this��release. The Corporation's financial results are reported
under��International Financial Reporting Standards (IFRS) and all
comparative figures have been restated accordingly.
MONTREAL, March 14, 2012 /CNW Telbec/ - Power Corporation of Canada
(TSX: POW) today reported operating earnings attributable to
participating shareholders for the year ended December 31, 2011 of
$1,152 million or $2.50 per share, compared with $957��million or $2.09
per share in 2010. This represents an increase of 19.9% on a per share
basis.
The increase in operating earnings reflects a higher contribution from
Power Financial��Corporation (Power Financial), a subsidiary of the
Corporation, and an increase in income from investments.
Subsidiaries contributed $1,150��million to Power Corporation's operating
earnings for the year ended December 31, 2011, compared with $1,097
million in 2010. Results from corporate activities were a contribution
of $43 million for the year ended December 31, 2011, compared with a
net charge of $99 million in 2010. This increase is mainly due to
income from investments generated by the Corporation's interest in the
Sagard 1 fund in Europe which is managed by Sagard SAS, a wholly owned
subsidiary of the Corporation, and income from other investment funds.
Other items, not included in operating earnings, represented a charge of
$77 million for the year ended December 31, 2011, compared with a
charge of $230 million in 2010.
Other items in 2011 include the Corporation's share of non-operating
earnings of Power Financial's subsidiaries Great-West Lifeco Inc.
(Lifeco) for an amount of $58 million and IGM Financial Inc. (IGM) for
an amount of $23 million, as follows:
In the fourth quarter of 2011, Lifeco re-evaluated and reduced a
litigation provision established in the third quarter of 2010. The
re-evaluation positively impacted common shareholders' net earnings of
Lifeco by $223 million. Additionally, Lifeco established a $99��million
after-tax provision in respect of the settlement of litigation relating
to its ownership in a U.S.-based private equity firm. The net impact to
Power Corporation of these two unrelated matters was a positive
contribution of $58 million.
Other items at IGM represent the after-tax gain on the sale of M.R.S.
Trust Company and M.R.S. Inc. by Mackenzie Financial Corporation as
well as a one-time tax adjustment.
Other items in 2011 also include the Corporation's $87 million share of
an impairment of ���650��million recorded by Groupe Bruxelles Lambert on
its investment in Lafarge SA, and an impairment charge on the
Corporation's investment in CITIC Pacific Limited for an amount of $72
million recorded in the third quarter.
As a result, net earnings attributable to participating shareholders for
the year ended December 31, 2011 were $1,075��million or $2.34 per
share, compared with $727��million or $1.59 per share in 2010.
FOURTH QUARTER RESULTS
Operating earnings attributable to participating shareholders for the
three-month period ended December 31, 2011 were $241 million or $0.52
per share, compared with $232 million or $0.51 per share in the
corresponding period of 2010. This represents an increase of 3.4% on a
per share basis.
Power Corporation's share of operating earnings from its subsidiaries
was $279 million for the three-month period ended December 31, 2011,
compared with $274 million for the same period in 2010. Corporate
activities represented a net charge of $28 million in the three-month
period ended December 31, 2011, compared with a net charge of
$32��million in the corresponding period of 2010.
Other items were a contribution of $73 million in the three-month period
ended December 31, 2011, as detailed above, compared with a charge of
$3 million in the corresponding period of 2010. ��
As a result, net earnings attributable to participating shareholders for
the three-month period ended December 31, 2011 were $314��million or
$0.68 per share, compared with $229 million or $0.50 per share in the
corresponding period of 2010.
RESULTS OF POWER FINANCIAL CORPORATION
Power Financial reported operating earnings attributable to common
shareholders for the year ended December��31, 2011 of $1,729 million or
$2.44 per share, compared with $1,625��million or $2.30 per share in
2010. This represents an increase of 6.2% on a per share basis.
The increase in operating earnings of Power Financial reflects primarily
the increase in the contribution from Lifeco and IGM.
For the year ended December 31, 2011, other items were a charge of $7
million and consisted mainly of Power Financial's share of an
impairment charge recorded by Pargesa Holding SA (Pargesa) in the third
quarter on its indirect investment in Lafarge SA, offset by its share
of non-operating earnings of Lifeco and IGM, as discussed above. In
2010, other items were a charge of $157 million and consisted mainly of
Power Financial's share of a litigation provision recorded in the third
quarter by Lifeco.
As a result, net earnings attributable to common shareholders of Power
Financial for the year ended December��31, 2011 were��$1,722��million or
$2.43 per share, compared with $1,468��million or $2.08��per share in
2010.
For the quarter ended December 31, 2011, Power Financial reported
operating earnings attributable to common shareholders of��$422��million
or $0.60 per share, compared with $404��million or $0.57��per share in
the corresponding quarter of 2010, an increase of 4.6% on a per share
basis.
Other items in the fourth quarter of 2011 were a contribution of $111
million, compared with a charge of $15��million for the same period in
2010.
As a result, net earnings attributable to common shareholders of Power
Financial for the quarter ended December��31, 2011 were $533��million or
$0.75 per share, compared with $389��million or $0.55 per share in the
corresponding quarter of 2010.
DIVIDENDS ON 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 |
1986 Series - POW.PR.F�� | 23-Mar-12 | 15-Apr-12 | To be determined in accordance with the articles of the Corporation |
Series A - POW.PR.A | 23-Mar-12 | 15-Apr-12 | 35�� |
Series B - POW.PR.B | 23-Mar-12 | 15-Apr-12 | 33.4375�� |
Series C - POW.PR.C | 23-Mar-12 | 15-Apr-12 | 36.25�� |
Series D - POW.PR.D | 23-Mar-12 | 15-Apr-12 | 31.25�� |
Series G - POW.PR.G | 23-Mar-12 | 15-Apr-12 | 18.027�� |
DIVIDENDS ON PARTICIPATING SHARES
The Board of Directors also declared a dividend of 29 cents per share on
the Participating Preferred and Subordinate Voting Shares of the
Corporation, payable March 30, 2012 to shareholders of record March 23,
2012.
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.
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,
reflects 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 foregoing list of
factors, 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 this MD&A and its
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 are subdivided
into the following components:
operating earnings; 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 Power
Corporation, and believes that they provide additional meaningful
information to readers in their analysis of the results of the
Corporation.
Operating earnings 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.
�� |
CONSOLIDATED BALANCE SHEETS | ||||||
�� | December��31, | �� | December��31, | �� | January��1, | |
[in millions of Canadian dollars] | 2011 | �� | 2010 | �� | 2010 | |
Assets | �� | �� | �� | �� | �� | |
Cash and cash equivalents | 3,741 | �� | 4,016 | �� | 5,383 | |
Investments | �� | �� | �� | �� | �� | |
�� | Bonds | 79,186 | �� | 74,250 | �� | 67,942 |
�� | Mortgages and other loans | 21,541 | �� | 20,209 | �� | 20,613 |
�� | Shares | 7,876 | �� | 7,737 | �� | 7,584 |
�� | Investment properties | 3,201 | �� | 2,957 | �� | 2,615 |
�� | Loans to policyholders | 7,162 | �� | 6,827 | �� | 6,957 |
�� | 118,966 | �� | 111,980 | �� | 105,711 | |
Funds held by ceding insurers | 9,923 | �� | 9,856 | �� | 10,984 | |
Reinsurance assets | 2,061 | �� | 2,533 | �� | 2,800 | |
Investments in associates | 2,341 | �� | 2,565 | �� | 2,948 | |
Owner-occupied properties | 565 | �� | 511 | �� | 502 | |
Capital assets | 340 | �� | 320 | �� | 305 | |
Derivative financial instruments | 1,056 | �� | 1,030 | �� | 782 | |
Other assets | 4,759 | �� | 4,774 | �� | 4,920 | |
Deferred tax assets | 1,227 | �� | 1,244 | �� | 1,294 | |
Intangible assets | 5,107 | �� | 5,111 | �� | 5,279 | |
Goodwill | 8,828 | �� | 8,759 | �� | 8,686 | |
Segregated funds for the risk of unit holders | 96,582 | �� | 94,827 | �� | 87,495 | |
Total assets | 255,496 | �� | 247,526 | �� | 237,089 | |
�� | �� | �� | �� | �� | �� | |
Liabilities | �� | �� | �� | �� | �� | |
Insurance contract liabilities | 114,730 | �� | 107,405 | �� | 105,028 | |
Investment contract liabilities | 782 | �� | 791 | �� | 841 | |
Deposits and certificates | 151 | �� | 835 | �� | 907 | |
Funds held under reinsurance contracts | 169 | �� | 149 | �� | 331 | |
Obligation to securitization entities | 3,827 | �� | 3,505 | �� | 3,310 | |
Debentures and other borrowings | 6,296 | �� | 6,720 | �� | 6,339 | |
Capital trust securities | 533 | �� | 535 | �� | 540 | |
Derivative financial instruments | 430 | �� | 244 | �� | 359 | |
Preferred shares of subsidiaries | - | �� | - | �� | 499 | |
Other liabilities | 5,668 | �� | 7,530 | �� | 6,763 | |
Deferred tax liabilities | 1,293 | �� | 1,134 | �� | 1,003 | |
Insurance and investment contracts on account of unit holders | 96,582 | �� | 94,827 | �� | 87,495 | |
Total liabilities | 230,461 | �� | 223,675 | �� | 213,415 | |
�� | �� | �� | �� | �� | �� | |
Equity | �� | �� | �� | �� | �� | |
Stated capital | �� | �� | �� | �� | �� | |
�� | Non-participating shares | 779 | �� | 783 | �� | 787 |
�� | Participating shares | 571 | �� | 549 | �� | 526 |
Retained earnings | 8,119 | �� | 7,557 | �� | 7,374 | |
Reserves | 356 | �� | 541 | �� | 894 | |
Total shareholders' equity | 9,825 | �� | 9,430 | �� | 9,581 | |
Non-controlling interests | 15,210 | �� | 14,421 | �� | 14,093 | |
Total equity | 25,035 | �� | 23,851 | �� | 23,674 | |
Total liabilities and equity | 255,496 | �� | 247,526 | �� | 237,089 | |
CONSOLIDATED STATEMENTS OF EARNINGS | ||||
For the years ended December 31 | �� | �� | ||
[in millions of Canadian dollars, except per share amounts] | 2011 | 2010 | ||
Revenues | �� | �� | ||
Premium income | �� | �� | ||
�� | Gross premiums written | 20,013 | 20,404 | |
�� | Ceded premiums | (2,720) | (2,656) | |
Total net premiums | 17,293 | 17,748 | ||
Net investment income | �� | �� | ||
�� | Regular net investment income | 5,720 | 5,723 | |
�� | Change in fair value | 4,154 | 3,785 | |
�� | 9,874 | 9,508 | ||
Fee and media income | 5,745 | 5,564 | ||
Total revenues | 32,912 | 32,820 | ||
�� | �� | �� | ||
Expenses | �� | �� | ||
Policyholder benefits | �� | �� | ||
�� | Insurance and investment contracts | �� | �� | |
�� | �� | Gross | 16,591 | 17,550 |
�� | �� | Ceded | (1,217) | (2,208) |
�� | 15,374 | 15,342 | ||
Policyholder dividends and experience refunds | 1,424 | 1,466 | ||
Change in insurance and investment contract liabilities | 6,245 | 6,417 | ||
Total paid or credited to policyholders | 23,043 | 23,225 | ||
Commissions | 2,312 | 2,216 | ||
Operating and administrative expenses | 3,501 | 4,299 | ||
Financing charges | 443 | 465 | ||
Total expenses | 29,299 | 30,205 | ||
�� | 3,613 | 2,615 | ||
Share of earnings (losses) of investments in associates | (20) | 124 | ||
Earnings before income taxes - continuing operations | 3,593 | 2,739 | ||
Income taxes | 711 | 532 | ||
Net earnings - continuing operations | 2,882 | 2,207 | ||
Net earnings - discontinued operations | 63 | 2 | ||
Net earnings | 2,945 | 2,209 | ||
�� | �� | �� | ||
Attributable to | �� | �� | ||
�� | Non-controlling interests | 1,829 | 1,441 | |
�� | Non-participating shareholders | 41 | 41 | |
�� | Participating shareholders | 1,075 | 727 | |
�� | 2,945 | 2,209 | ||
�� | �� | �� | ||
Earnings per participating share | �� | �� | ||
�� | Net earnings attributable to participating shareholders | �� | �� | |
�� | �� | - Basic | 2.34 | 1.59 |
�� | �� | - Diluted | 2.32 | 1.57 |
�� | �� | �� | ||
�� | Net earnings from continuing operations attributable to participating shareholders | �� | �� | |
�� | �� | - Basic | 2.29 | 1.59 |
�� | �� | - Diluted | 2.27 | 1.57 |
SEGMENTED INFORMATION | ||||||||||
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
INFORMATION ON PROFIT MEASURE | ||||||||||
For the year ended December 31, 2011 | Lifeco | �� | IGM | �� | Parjointco | �� | Other | �� | Total | |
Revenues | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Premium income, net | 17,293 | �� | - | �� | - | �� | - | �� | 17,293 | |
Investment income, net | 9,702 | �� | 161 | �� | - | �� | 11 | �� | 9,874 | |
Fee and media income | 2,903 | �� | 2,571 | �� | - | �� | 271 | �� | 5,745 | |
�� | 29,898 | �� | 2,732 | �� | - | �� | 282 | �� | 32,912 | |
Expenses | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Total paid or credited to policyholders | 23,043 | �� | - | �� | - | �� | - | �� | 23,043 | |
Commissions | 1,548 | �� | 895 | �� | - | �� | (131) | �� | 2,312 | |
Operating and administrative expenses | 2,314 | �� | 638 | �� | - | �� | 549 | �� | 3,501 | |
Financing charges | 289 | �� | 103 | �� | - | �� | 51 | �� | 443 | |
�� | 27,194 | �� | 1,636 | �� | - | �� | 469 | �� | 29,299 | |
�� | 2,704 | �� | 1,096 | �� | - | �� | (187) | �� | 3,613 | |
Share of earnings (losses) of investments in associates�� | - | �� | - | �� | (20) | �� | - | �� | (20) | |
Earnings before income taxes - continuing operations | 2,704 | �� | 1,096 | �� | (20) | �� | (187) | �� | 3,593 | |
Income taxes | 465 | �� | 250 | �� | - | �� | (4) | �� | 711 | |
Contribution to net earnings - continuing operations | 2,239 | �� | 846 | �� | (20) | �� | (183) | �� | 2,882 | |
Contribution to net earnings - discontinued operations | - | �� | 63 | �� | - | �� | - | �� | 63 | |
Contribution to net earnings | 2,239 | �� | 909 | �� | (20) | �� | (183) | �� | 2,945 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Attributable to | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Non-controlling interests | 1,324 | �� | 566 | �� | (7) | �� | (54) | �� | 1,829 |
�� | Non-participating shareholders | - | �� | - | �� | - | �� | 41 | �� | 41 |
�� | Participating shareholders | 915 | �� | 343 | �� | (13) | �� | (170) | �� | 1,075 |
�� | 2,239 | �� | 909 | �� | (20) | �� | (183) | �� | 2,945 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
For the year ended December 31, 2010 | Lifeco | �� | IGM | �� | Parjointco | �� | Other | �� | Total | |
Revenues | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Premium income, net | 17,748 | �� | - | �� | - | �� | - | �� | 17,748 | |
Investment income, net | 9,534 | �� | 146 | �� | - | �� | (172) | �� | 9,508 | |
Fee and media income | 2,821 | �� | 2,468 | �� | - | �� | 275 | �� | 5,564 | |
�� | 30,103 | �� | 2,614 | �� | - | �� | 103 | �� | 32,820 | |
Expenses | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Total paid or credited to policyholders | 23,225 | �� | - | �� | - | �� | - | �� | 23,225 | |
Commissions | 1,477 | �� | 854 | �� | - | �� | (115) | �� | 2,216 | |
Operating and administrative expenses | 3,150 | �� | 636 | �� | - | �� | 513 | �� | 4,299 | |
Financing charges | 288 | �� | 111 | �� | - | �� | 66 | �� | 465 | |
�� | 28,140 | �� | 1,601 | �� | - | �� | 464 | �� | 30,205 | |
�� | 1,963 | �� | 1,013 | �� | - | �� | (361) | �� | 2,615 | |
Share of earnings (losses) of investments in associates�� | - | �� | - | �� | 121 | �� | 3 | �� | 124 | |
Earnings before income taxes - continuing operations | 1,963 | �� | 1,013 | �� | 121 | �� | (358) | �� | 2,739 | |
Income taxes | 254 | �� | 270 | �� | - | �� | 8 | �� | 532 | |
Contribution to net earnings - continuing operations | 1,709 | �� | 743 | �� | 121 | �� | (366) | �� | 2,207 | |
Contribution to net earnings - discontinued operations | - | �� | 2 | �� | - | �� | - | �� | 2 | |
Contribution to net earnings | 1,709 | �� | 745 | �� | 121 | �� | (366) | �� | 2,209 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Attributable to | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Non-controlling interests | 976 | �� | 470 | �� | 41 | �� | (46) | �� | 1,441 |
�� | Non-participating shareholders | - | �� | - | �� | - | �� | 41 | �� | 41 |
�� | Participating shareholders | 733 | �� | 275 | �� | 80 | �� | (361) | �� | 727 |
�� | 1,709 | �� | 745 | �� | 121 | �� | (366) | �� | 2,209 | |
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For further information:
Attachments:��
FINANCIAL�� INFORMATION
For further information, please contact:
Mr. Edward Johnson
Senior Vice-President,
General Counsel and Secretary
514-286-7400
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