Friday, November 11, 2011

POW - <span class="simulate_din_font">Power Corporation of Canada Reports 2011 Third Quarter Financial Results and Dividends</span> (CAD 0.29)

Company: Power Corporation Of Canada Sv
Stock Name: POW
Amount: CAD 0.29
Announcement Date: 11/11/2011
Record Date: 07/12/2011

Dividend Detail:




TORONTO, Nov. 11, 2011 /CNW Telbec/ - Power Corporation of Canada's
operating earnings for the nine-month period ended September30,2011
were $942million or $1.98per share, compared with $756 million or
$1.58 per share in the corresponding period of 2010. This represents a
25.1% increase on a per share basis.



The increase in operating earnings reflects a higher contribution from
Power FinancialCorporation, a subsidiary of the Corporation, and
higher income from investments.



Subsidiaries contributed $871million to Power Corporation's operating
earnings for the nine-month period ended September 30, 2011, compared
with $823 million in the corresponding period of 2010. Results from
corporate activities were a net contribution of $71million in the
nine-month period ended September30,2011, compared with a net charge
of $67million in the same period 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
subsidiary of the Corporation, and income from other investment funds.



Other items in the nine-month period ended September30,2011
represented a charge of $150million and include a write-down of the
Corporation's investment in CITIC Pacific for an amount of $72 million
recorded in the third quarter. Also included in other items is the
Corporation's share (in the amount of $87 million) of Pargesa's
impairment charge recorded in the third quarter on its indirect
investment in Lafarge S.A. In the corresponding nine-month period of
2010, other items were a charge of $227 million and included an
impairment charge on CITIC Pacific of $133 million and the
Corporation's share (in the amount of $96 million) of a litigation
provision recorded by Great-West Lifeco Inc. (Lifeco), a subsidiary of
Power Financial.



Net earnings attributable to participating shareholders (including other
items and after dividends on non-participating shares) for the
nine-month period ended September 30, 2011 were $761million or
$1.66per share, compared with $498million or $1.09per share in the
corresponding period of 2010.



THIRD QUARTER RESULTS



Operating earnings for the three-month period ended September 30, 2011
were $348 million or $0.73 per share, compared with $275 million or
$0.58 per share in the corresponding period in 2010. This represents an
increase of 27.6% on a per share basis.



Power Corporation's share of operating earnings from its subsidiaries
was $284 million for the three-month period ended September 30, 2011,
compared with $293 million for the same period in 2010. Corporate
activities represented a net contribution of $64 million in the quarter
ended September 30, 2011, compared with a net charge of $18million in
the corresponding period in 2010, mainly due to income from investments
generated by the Corporation's interest in the Sagard 1 fund in Europe
and income from other investment funds.



Other items were a charge of $148 million in the three-month period
ended September 30, 2011, compared with a charge of $96 million in the
corresponding period of 2010.



Net earnings attributable to participating shareholders (including other
items and after dividends on non-participating shares) for the
three-month period ended September 30, 2011 were $190million or $0.41
per share, compared with $169 million or $0.37 per share in the
corresponding period in 2010.



RESULTS OF POWER FINANCIAL CORPORATION



Power Financial Corporation's operating earnings for the nine-month
period ended September30, 2011 were $1,385 million or $1.84 per share,
compared with $1,294 million or $1.73 per share in the corresponding
period in 2010. This represents an increase of 6.8% on a per share
basis.



The increase in operating earnings reflects primarily the increase in
the contribution from Power Financial's subsidiaries, Lifeco and IGM
Financial Inc.



For the nine-month period ended September 30, 2011, other items
represented a charge of $118 million and consisted mainly of Power
Financial's share (in the amount of $133 million) of Pargesa's
impairment charge recorded in the third quarter on its indirect
investment in Lafarge S.A. In the corresponding nine-month period of
2010, other items were a charge of $142 million and consisted mainly of
Power Financial's share of a litigation provision recorded by Lifeco,
established in the third quarter.



Net earnings attributable to common shareholders of Power Financial
(including other items and after dividends on perpetual preferred
shares) for the nine-month period ended September30, 2011 were $1,189
million
or $1.68 per share, compared with $1,079 million or $1.53 per
share in the corresponding period of 2010.



For the three-month period ended September 30, 2011, Power Financial
reported operating earnings of $454 million or $0.60 per share,
compared with $465 million or $0.62 per share for the same period in
2010.



Other items for the third quarter of 2011 were a charge of $116 million,
compared with a charge of $144 million for the same quarter in 2010.



Net earnings attributable to common shareholders of Power Financial
(including other items and after dividends on perpetual preferred
shares) for the three-month period ended September 30, 2011 were $312
million
or $0.44 per share, compared with $294 million or $0.42 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:











































TYPE OF SHARES

RECORD DATE

PAYMENT DATE

AMOUNT

1986 Series

December 23, 2011

January 15, 2012

To be determined in accordance with the articles of the Corporation

Series A

December 23, 2011

January 15, 2012

35

Series B

December 23, 2011

January 15, 2012

33.4375

Series C

December 23, 2011

January 15, 2012

36.25

Series D

December 23, 2011

January 15, 2012

31.25


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 December 30, 2011 to shareholders of record
December 9, 2011.



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, 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, 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.












































































































































































































































































































































































































CONDENSED CONSOLIDATED BALANCE SHEETS



(unaudited)

[in millions of Canadian dollars]

September 30,

2011



December 31,

2010



January 1,

2010

Assets











Cash and cash equivalents

3,568



4,016



5,383

Investments













Bonds

80,191



74,250



67,942



Mortgages and other loans

20,947



20,209



20,613



Shares

7,368



7,736



7,584



Investment properties

3,238



2,959



2,615



111,744



105,154



98,754

Loans to policyholders

7,144



6,827



6,957

Funds held by ceding insurers

10,118



9,856



10,984

Reinsurance assets

2,220



2,533



2,800

Investments in associates

2,255



2,566



2,948

Deferred tax assets

1,291



1,272



1,332

Other assets

7,493



7,444



7,355

Assets held for sale

898



-



-

Intangible assets

4,396



4,317



4,433

Goodwill

8,813



8,755



8,686

Segregated funds for the risk of unit holders

94,053



94,827



87,495

Total assets

253,993



247,567



237,127













Liabilities











Insurance contract liabilities

114,070



107,367



104,988

Investment contract liabilities

784



791



841

Deposits and certificates

149



835



907

Funds held under reinsurance contracts

177



149



331

Obligation to securitization entities

3,554



3,505



3,310

Debentures and other borrowings

6,294



6,720



6,339

Capital trust securities and debentures

531



535



540

Preferred shares of subsidiaries

-



-



499

Deferred tax liabilities

1,159



1,165



1,043

Other liabilities

7,950



7,784



7,122

Liabilities held for sale

659



-



-

Insurance and investment contracts on account of unit holders

94,053



94,827



87,495

Total liabilities

229,380



223,678



213,415













Equity











Stated capital













Non-participating shares

780



783



787



Participating shares

571



549



526

Retained earnings

7,952



7,573



7,390

Reserves

328



541



894

Total shareholders' equity

9,631



9,446



9,597

Non-controlling interests

14,982



14,443



14,115

Total equity

24,613



23,889



23,712

Total liabilities and equity

253,993



247,567



237,127











































































































































































































































































































































































































CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS





Three months ended September 30



Nine months ended September 30

(unaudited)

[in millions of Canadian dollars, except per share amounts]

2011

2010



2011

2010

Revenues

 





 



Premium income

 





 





Gross premiums written

5,059

4,956



14,980

15,091



Ceded premiums

(667)

(643)



(2,021)

(1,953)

Total net premiums

4,392

4,313



12,959

13,138

Net investment income

  











Regular net investment income

1,365

1,514



4,312

4,173



Change in fair value

2,091

2,641



2,615

5,387



3,456

4,155



6,927

9,560

Fee and media income

1,398

1,345



4,345

4,129

Total revenues

9,246

9,813



24,231

26,827



 





 



Expenses

 





 



Policyholder benefits

3,704

3,557



11,484

11,305

Policyholder dividends and experience refunds

385

382



1,115

1,116

Change in insurance and investment contract liabilities

2,737

3,418



4,104

7,226



6,826

7,357



16,703

19,647

Commissions

564

528



1,742

1,622

Operating expenses

977

1,326



2,951

3,305

Financing charges

108

116



334

352

Total expenses

8,475

9,327



21,730

24,926



771

486



2,501

1,901

Share of earnings (losses) of investment in associates

(96)

60



(32)

117

Earnings before income taxes

675

546



2,469

2,018

Income taxes

119

76



484

421

Net earnings before non-controlling interests













- continuing operations

556

470



1,985

1,597

Net earnings before non-controlling interests













- discontinued operations

31

-



33

-

Net earnings before non-controlling interests

587

470



2,018

1,597

Attributable to non-controlling interests

(387)

(291)



(1,226)

(1,068)

Net earnings attributable to shareholders

200

179



792

529

Non-participating share dividends

(10)

(10)



(31)

(31)

Net earnings attributable to participating shareholders

190

169



761

498



 





 





 





 



Earnings per participating share

 





 





Net earnings attributable to participating shareholders

 





 





- Basic

0.41

0.37



1.66

1.09



- Diluted

0.41

0.37



1.64

1.08



 





 





Net earnings from continuing operations to participating shareholders

 





 





- Basic

0.38

0.37



1.63

1.09



- Diluted

0.38

0.37



1.61

1.08























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































SEGMENTED INFORMATION

INFORMATION ON PROFIT MEASURE



Three months ended September 30, 2011

Lifeco



IGM



Parjointco



Other



Total

Revenues



















Premium income

4,392



-



-



-



4,392

Net investment income





















Regular net investment income

1,330



34



-



1



1,365



Change in fair value

2,080



11



-



-



2,091



3,410



45



-



1



3,456

Fee and media income

704



628



-



66



1,398



8,506



673



-



67



9,246

Expenses



















Policyholder benefits, dividends and experience refunds, and change in
insurance and investment contract liabilities

6,826



-



-



-



6,826

Commissions

372



219



-



(27)



564

Operating expenses

693



156



-



128



977

Financing charges

72



24



-



12



108



7,963



399



-



113



8,475



543



274



-



(46)



771

Share of operating earnings of investment in associates

-



-



36



1



37

Share of non-operating earnings of investment in associates

-



-



(133)



-



(133)

Earnings before income taxes

543



274



(97)



(45)



675

Income taxes

54



62



-



3



119

Contribution to net earnings before non-controlling interests -
continuing operations

489





212





(97)





(48)





556

Contribution to net earnings before non-controlling interests -
discontinued operations

-





31





-





-



31

Contribution to net earnings before non-controlling interests

489



243



(97)



(48)



587

Attributable to non-controlling interests

(282)



(152)



33



14



(387)

Contribution to net earnings attributable toparticipating shareholders

207



91



(64)



(34)



200









































Three months ended September 30, 2010

Lifeco



IGM



Parjointco



Other



Total

Revenues



















Premium income

4,313



-



-



-



4,313

Net investment income





















Regular net investment income

1,493



16



-



5



1,514



Change in fair value

2,629



12



-



-



2,641



4,122



28



-



5



4,155

Fee and media income

681



604



-



60



1,345



9,116



632



-



65



9,813

Expenses



















Policyholder benefits, dividends and experience refunds, and change in
insurance and investment contract liabilities

7,357



-



-



-



7,357

Commissions

346



207



-



(25)



528

Operating expenses

1,057



149



-



120



1,326

Financing charges

71



28



-



17



116



8,831



384



-



112



9,327



285



248



-



(47)



486

Share of operating earnings of investment in associates

-



-



55



1



56

Share of non-operating earnings of investment in associates

-



-



4



-



4

Earnings before income taxes

285



248



59



(46)



546

Income taxes

-



73



-



3



76

Contribution to net earnings before non-controlling interests -
continuing operations

285





175





59





(49)





470

Contribution to net earnings before non-controlling interests -
discontinued operations

-





-





-





-





-

Contribution to net earnings before non-controlling interests

285



175



59



(49)



470

Attributable to non-controlling interests

(164)



(110)



(20)



3



(291)

Contribution to net earnings attributable toparticipating shareholders

121



65



39



(46)



179









































Nine months ended September 30, 2011

Lifeco



IGM



Parjointco



Other



Total

Revenues



















Premium income

12,959



-



-



-



12,959

Net investment income





















Regular net investment income

4,173



106



-



33



4,312



Change in fair value

2,600



15



-



-



2,615



6,773



121



-



33



6,927

Fee and media income

2,163



1,963



-



219



4,345



21,895



2,084



-



252



24,231

Expenses



















Policyholder benefits, dividends and experience refunds, and change in
insurance and investment contract liabilities

16,703



-



-



-



16,703

Commissions

1,139



682



-



(79)



1,742

Operating expenses

2,068



482



-



401



2,951

Financing charges

216



80



-



38



334



20,126



1,244



-



360



21,730



1,769



840



-



(108)



2,501

Share of operating earnings of investment in associates

-



-



103



-



103

Share of non-operating earnings of investment in associates

-



-



(135)



-



(135)

Earnings before income taxes

1,769



840



(32)



(108)



2,469

Income taxes

284



197



-



3



484

Contribution to net earnings before non-controlling interests -
continuing operations

1,485





643





(32)





(111)





1,985

Contribution to net earnings before non-controlling interests -
discontinued operations

-





33





-





-





33

Contribution to net earnings before non-controlling interests

1,485



676



(32)



(111)



2,018

Attributable to non-controlling interests

(852)



(422)



11



37



(1,226)

Contribution to net earnings attributable toparticipating shareholders

633



254



(21)



(74)



792









































Nine months ended September 30, 2010

Lifeco



IGM



Parjointco



Other



Total

Revenues



















Premium income

13,138



-



-



-



13,138

Net investment income





















Regular net investment income

4,245



75



-



(147)



4,173



Change in fair value

5,365



22



-



-



5,387



9,610



97



-



(147)



9,560

Fee and media income

2,108



1,820



-



201



4,129



24,856



1,917



-



54



26,827

Expenses



















Policyholder benefits, dividends and experience refunds, and change in
insurance and investment contract liabilities

19,647



-



-



-



19,647

Commissions

1,064



633



-



(75)



1,622

Operating expenses

2,480



452



-



373



3,305

Financing charges

215



83



-



54



352



23,406



1,168



-



352



24,926



1,450



749



-



(298)



1,901

Share of operating earnings of investment in associates

-



-



114



1



115

Share of non-operating earnings of investment in associates

-



-



2



-



2

Earnings before income taxes

1,450



749



116



(297)



2,018

Income taxes

215



198



-



8



421

Contribution to net earnings before non-controlling interests -
continuing operations

1,235





551





116





(305)





1,597

Contribution to net earnings before non-controlling interests -
discontinued operations

-





-





-





-





-

Contribution to net earnings before non-controlling interests

1,235



551



116



(305)



1,597

Attributable to non-controlling interests

(712)



(347)



(40)



31



(1,068)

Contribution to net earnings attributable toparticipating shareholders

523



204



76



(274)



529














For further information:
Attachments:  For further information, please contact:
FINANCIAL INFORMATION  Mr. Edward Johnson
Senior Vice-President,
General Counsel and Secretary
514-286-7400













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