CI Financial reports first quarter results: Earnings per share increase 16%; dividend raised 5%

TSX Symbol: CIX

TORONTO, May 7, 2015 /CNW/ - CI Financial Corp. ("CI") today released unaudited financial results for the quarter ended March 31, 2015.

QUARTERLY RESULTS (in $millions except for per share data)^1		Quarter ended March 31, 2015		Quarter ended March 31, 2014		% change
Assets Under Management		109,137		96,445		13
Average Assets Under Management		106,531		93,488		14
Net Income		144.5		121.7		19
Earnings Per Share		0.51		0.43		19
Adjusted Earnings Per Share^2		0.50		0.43		16
EBITDA Per Share^3		0.84		0.75		12
Pre-Tax Operating Earnings Per Share^3		0.79		0.70		13
Cash Provided By Operating Activities		146.0		116.5		25
Free Cash Flow^3		143.0		123.2		16
OTHER METRICS		Quarter ended March 31, 2015		Quarter ended March 31, 2014		% change
Dividends Recorded Per Share (in $)		0.315		0.285		11
Long-Term Debt (in $millions; including current portion)		311.5		499.0		(38)
Net Debt (in $millions)^3		210.7		334.3		(37)
SG&A Expenses^4		34.6 bps		36.3 bps		(5)
Return on Equity		28.8%		25.1%		n/a

^1	All results are net of non-controlling interest.
^2	Q1-2015 excludes after-tax adjustments of $7.5 million to contingent consideration, a $1.4 million writedown of fund management contracts and a $2.9 million provision for legal costs.
^3	EBITDA (earnings before interest, taxes, depreciation and amortization), pre-tax operating earnings, free cash flow and net debt are not standardized measures prescribed by IFRS; however, management uses these financial measures and also 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. These non-IFRS measures and reconciliations to IFRS, where necessary, are included in Management's Discussion and Analysis available at www.cifinancial.com.
^4	As an annualized percentage of average assets under management.

Average assets under management reached a record $106.5 billion for the first quarter, an increase of 14% from the same quarter in the previous year. At March 31, 2015, CI's assets under management reached a record high at a quarter-end of $109.1 billion, up 13% from $96.4 billion at March 31, 2014. The S&P/TSX Composite Index returned 7% and the FTSE TMX Canada Universe Bond Index was up 10% over the same period. Net sales in the first quarter of 2015 were $1.2 billion.

Net income for the quarter of $144.5 million represented a new high for CI and a 19% increase over $121.7 million in the first quarter of 2014. Earnings per share increased 19% to $0.51 from $0.43 in the same quarter one year ago. Adjusted for non-recurring items, earnings per share increased 16% in the quarter to $0.50 from $0.43 in the first quarter of 2014.

"It has been a great start to the year for CI, with assets reaching a record high of $109 billion and earnings also setting a record," said Stephen A. MacPhail, CI President and Chief Executive Officer. "Our net sales continue to be robust, having gained momentum during the first four months and currently exceeding $2 billion for the year-to-date."

"CI's strong cash flow has allowed us to increase the monthly dividend again, for the seventh increase in the last four years, and supported CI's share buyback program in which we have purchased nearly $50 million in shares in 2015."

EBITDA per share for the first quarter increased 12% to $0.84 in 2015 from $0.75 in the first quarter of 2014, and pre-tax operating earnings per share were up 13% over the same period.

CI continued to maintain its discretionary spending below the rate of growth in assets under management. Selling, general and administrative (SG&A) expenses as an annualized percentage of average assets under management fell to 34.6 basis points in the first quarter of 2015 from 36.3 basis points in the first quarter of 2014.

CI generated $143.0 million in free cash flow during the quarter ended March 31, 2015. This represented a 16% increase compared to $123.2 million in the first quarter of 2014. CI's cash flow facilitated the repurchase of $47.0 million in CI shares and the payment of $88.9 million in dividends. As at April 30, 2015, CI had 280,587,429 shares outstanding.

The Board of Directors declared a 5% increase in the monthly cash dividend to $0.11 per share payable on each of June 15, July 15, and August 14, 2015 to shareholders of record on May 31, June 30 and July 31, 2015, respectively. The monthly dividend represents a yield of 3.8% on CI's closing share price of $34.86 on May 6, 2015.

CI also reported that during the quarter it received notices of reassessment from the Canada Revenue Agency ("CRA") for the fiscal years 2006-2008, during which CI was structured as an income trust. CI strongly disagrees with CRA's position and believes it is without merit. CI has filed a notice of objection with CRA. CI has strong expert support for its position. This issue is not expected to affect CI's view towards future dividend increases or share repurchases.

For further information about the notices of reassessment from CRA and detailed financial statements for the quarter ended March 31, 2015, including Management's Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to CI's website at www.cifinancial.com under Reports, or contact [email protected].

Analysts' Conference Call
CI will hold a conference call with analysts today at 4 p.m. Eastern time. President and Chief Executive Officer Stephen MacPhail and Chief Financial Officer Douglas Jamieson will be presenting CI's results. Also attending will be Derek Green, President of CI Investments, and Steven Donald, President of Assante Wealth Management. The 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 [phone] or 1-866-696-5910 (passcode: 5527908). The call will be available for playback later that day until May 21, 2015 at [phone] or 1-800-408-3053 (passcode: 2817982). 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.

SOURCE CI Investments Inc.

Stephen A. MacPhail, President and Chief Executive Officer, CI Financial Corp., [phone]