Power Corporation of Canada - Nine-Month Results and Dividends
Readers are referred to the sections entitled "Forward-looking Statements" and "Non-GAAP Financial Measures" at the end of this release.
The decrease in operating earnings reflects a lower contribution from Power Financial Corporation and also reflects a lower level of income from investments compared with 2008.
For the nine-month period ended
Other items were a charge of
As a result, net earnings for the period were
THIRD-QUARTER RESULTS
---------------------
For the quarter ended
For the three-month period ended
Other items for the third quarter of 2009 were a charge of
Net earnings for the quarter were
RESULTS OF POWER FINANCIAL CORPORATION
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Power Financial Corporation's operating earnings for the nine-month period ended
The decrease in operating earnings reflects primarily the decrease in the contribution from Power Financial's subsidiaries and Parjointco.
Other items were a charge of
Net earnings, including other items, for the nine-month period ended
For the quarter ended
Other items for the third quarter of 2009 were a charge of
Net earnings for the quarter were
DIVIDENDS ON PREFERRED SHARES
-----------------------------
The Board of Directors today declared quarterly dividends on the Corporation's preferred shares, as follows:
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Type of
shares Record Date Payment Date Amount
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1986 Series December 23, 2009 January 15, 2010 To be determined in
accordance with the
articles of the
Corporation
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Series A December 23, 2009 January 15, 2010 35 cents
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Series B December 23, 2009 January 15, 2010 33.4375 cents
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Series C December 23, 2009 January 15, 2010 36.25 cents
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Series D December 23, 2009 January 15, 2010 31.25 cents
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DIVIDENDS ON PARTICIPATING SHARES
---------------------------------
The Board of Directors also declared a quarterly dividend of 29 cents on the Participating Preferred and Subordinate Voting Shares of the Corporation, payable
For purposes of the Income Tax Act (
Forward-looking Statements
--------------------------
Certain statements in this press release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's and its subsidiaries' current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial position and results of operations 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 readers are 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", "intends", "seeks", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.
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, the assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of material 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
The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's and its subsidiaries' forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.
Other than as specifically required by 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 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
Non-GAAP Financial Measures
---------------------------
In analysing 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 item 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.
Following the announcement in 2007 of GWL&A's sale of its health care business, which closed on
Operating earnings and operating earnings per share are non-GAAP financial measures that do not have a standard meaning and may not be comparable to similar measures used by other entities.
Attachments: Financial Information (unaudited)
POWER CORPORATION OF CANADA
CONSOLIDATED BALANCE SHEETS
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September 30,
2009 December 31,
(in millions of Canadian dollars) (unaudited) 2008
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Assets
Cash and cash equivalents 6,001 5,323
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Investments
Shares 7,439 6,240
Bonds 68,173 66,801
Mortgages and other loans 17,643 18,034
Loans to policyholders 7,058 7,622
Real estate 3,135 3,190
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103,448 101,887
Funds held by ceding insurers 11,258 11,447
Investments at equity 2,617 2,820
Intangible assets 4,546 4,792
Goodwill 8,743 8,712
Future income taxes 1,421 1,796
Other assets 6,626 6,894
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144,660 143,671
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Liabilities
Policy liabilities
Actuarial liabilities 99,033 97,895
Other 4,547 4,732
Deposits and certificates 953 959
Funds held under reinsurance contracts 122 192
Debentures and other borrowings 6,150 5,745
Preferred shares of subsidiaries 1,610 1,569
Capital trust securities and debentures 782 658
Future income taxes 1,025 808
Other liabilities 6,770 7,376
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120,992 119,934
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Non-controlling interests 13,870 13,980
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Shareholders' Equity
Stated capital
Non-participating shares 788 791
Participating shares 525 509
Contributed surplus 114 103
Retained earnings 8,837 8,612
Accumulated other comprehensive income (loss) (466) (258)
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9,798 9,757
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144,660 143,671
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CONSOLIDATED STATEMENTS OF EARNINGS
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Three months ended Nine months ended
September 30 September 30
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(unaudited) (in millions
of Canadian dollars,
except per share amounts) 2009 2008 2009 2008
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Revenues
Premium income 4,336 3,912 13,709 25,225
Net investment income
Regular net investment
income 1,605 1,657 4,866 4,794
Change in fair value
on held-for-trading
assets 3,743 (2,258) 4,019 (4,793)
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5,348 (601) 8,885 1
Fee and media income 1,375 1,501 3,945 4,612
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11,059 4,812 26,539 29,838
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Expenses
Policyholder benefits,
dividends and experience
refunds, and change in
actuarial liabilities 8,687 2,173 19,526 21,959
Commissions 502 556 1,509 1,646
Operating expenses 1,003 1,034 3,084 3,090
Financing charges 143 113 411 369
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10,335 3,876 24,530 27,064
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724 936 2,009 2,774
Share of earnings (losses)
of investments at equity 73 61 135 171
Other income (charges), net (3) (2) (52) 18
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Earnings from continuing
operations before income
taxes and non-controlling
interests 794 995 2,092 2,963
Income taxes 165 279 455 728
Non-controlling interests 379 384 1,009 1,166
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Earnings from continuing
operations 250 332 628 1,069
Earnings from discontinued
operations - - - 334
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Net earnings 250 332 628 1,403
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Earnings per participating
share
- Basic 0.52 0.70 1.31 3.00
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- Diluted 0.52 0.70 1.30 2.99
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SEGMENTED INFORMATION
INFORMATION ON PROFIT MEASURE
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Three months ended Par-
September 30, 2009 Lifeco IGM jointco Other Total
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Revenues
Premium income 4,336 - - - 4,336
Net investment income
Regular net investment
income 1,591 31 - (17) 1,605
Change in fair value
on held-for-trading
assets 3,734 9 - - 3,743
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5,325 40 - (17) 5,348
Fee and media income 728 582 - 65 1,375
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10,389 622 - 48 11,059
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Expenses
Policyholder benefits,
dividends and
experience refunds,
and change in
actuarial liabilities 8,687 - - - 8,687
Commissions 319 205 - (22) 502
Operating expenses 726 148 - 129 1,003
Financing charges 93 30 - 20 143
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9,825 383 - 127 10,335
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564 239 - (79) 724
Share of earnings
(losses) of
investments at equity - - 73 - 73
Other income (charges),
net - - (3) - (3)
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Earnings from
continuing operations
before income taxes
and non-controlling
interests 564 239 70 (79) 794
Income taxes 98 72 - (5) 165
Non-controlling
interests 262 105 24 (12) 379
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Contribution to
consolidated earnings
from continuing
operations 204 62 46 (62) 250
Contribution to
consolidated earnings
from discontinued
operations - - - - -
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Contribution to
consolidated net
earnings 204 62 46 (62) 250
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Three months ended Par-
September 30, 2008 Lifeco IGM jointco Other Total
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Revenues
Premium income 3,912 - - - 3,912
Net investment income
Regular net investment
income 1,539 49 - 69 1,657
Change in fair value
on held-for-trading
assets (2,258) - - - (2,258)
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(719) 49 - 69 (601)
Fee and media income 778 635 - 88 1,501
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3,971 684 - 157 4,812
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Expenses
Policyholder benefits,
dividends and
experience refunds,
and change in
actuarial liabilities 2,173 - - - 2,173
Commissions 341 230 - (15) 556
Operating expenses 732 155 - 147 1,034
Financing charges 76 22 - 15 113
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3,322 407 - 147 3,876
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649 277 - 10 936
Share of earnings
(losses) of
investments at equity - - 64 (3) 61
Other income (charges),
net - - (1) (1) (2)
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Earnings from
continuing operations
before income taxes
and non-controlling
interests 649 277 63 6 995
Income taxes 187 78 - 14 279
Non-controlling
interests 259 125 21 (21) 384
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Contribution to
consolidated earnings
from continuing
operations 203 74 42 13 332
Contribution to
consolidated earnings
from discontinued
operations - - - - -
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Contribution to
consolidated net
earnings 203 74 42 13 332
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Nine months ended Par-
September 30, 2009 Lifeco IGM jointco Other Total
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Revenues
Premium income 13,709 - - - 13,709
Net investment income
Regular net investment
income 4,718 148 - - 4,866
Change in fair value
on held-for-trading
assets 4,039 (20) - - 4,019
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8,757 128 - - 8,885
Fee and media income 2,074 1,641 - 230 3,945
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24,540 1,769 - 230 26,539
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Expenses
Policyholder benefits,
dividends and
experience refunds,
and change in
actuarial liabilities 19,526 - - - 19,526
Commissions 979 595 - (65) 1,509
Operating expenses 2,187 465 - 432 3,084
Financing charges 274 81 - 56 411
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22,966 1,141 - 423 24,530
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1,574 628 - (193) 2,009
Share of earnings
(losses) of
investments at
equity - - 140 (5) 135
Other income (charges),
net - - (62) 10 (52)
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Earnings from
continuing operations
before income taxes
and non-controlling
interests 1,574 628 78 (188) 2,092
Income taxes 298 183 - (26) 455
Non-controlling
interests 735 282 27 (35) 1,009
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Contribution to
consolidated earnings
from continuing
operations 541 163 51 (127) 628
Contribution to
consolidated earnings
from discontinued
operations - - - - -
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Contribution to
consolidated net
earnings 541 163 51 (127) 628
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Nine months ended Par-
September 30, 2008 Lifeco IGM jointco Other Total
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Revenues
Premium income 25,225 - - - 25,225
Net investment income
Regular net investment
income 4,539 166 - 89 4,794
Change in fair value
on held-for-trading
assets (4,793) - - - (4,793)
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(254) 166 - 89 1
Fee and media income 2,381 1,954 - 277 4,612
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27,352 2,120 - 366 29,838
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Expenses
Policyholder benefits,
dividends and
experience refunds,
and change in
actuarial liabilities 21,959 - - - 21,959
Commissions 993 700 - (47) 1,646
Operating expenses 2,140 485 - 465 3,090
Financing charges 259 66 - 44 369
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25,351 1,251 - 462 27,064
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2,001 869 - (96) 2,774
Share of earnings
(losses) of
investments at
equity - - 181 (10) 171
Other income (charges),
net - - 12 6 18
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Earnings from
continuing operations
before income taxes
and non-controlling
interests 2,001 869 193 (100) 2,963
Income taxes 466 242 - 20 728
Non-controlling
interests 793 384 65 (76) 1,166
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Contribution to
consolidated earnings
from continuing
operations 742 243 128 (44) 1,069
Contribution to
consolidated earnings
from discontinued
operations 334 - - - 334
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Contribution to
consolidated net
earnings 1,076 243 128 (44) 1,403
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For further information: Mr. Edward Johnson, Senior Vice-President, General Counsel and Secretary, (514) 286-7400
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