Canadian General Investments Reports 2004 Results.TORONTO -- Canadian General Investments, Limited (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CGI CGI in full Common Gateway Interface. Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. )(TSX:CGI.PR.A)(TSX:CGI.WT)(TSX:CGI.PR.B)(LSE LSE - Language Sensitive Editor :CGI)(LSE:CGIW) had another outstanding year, significantly outperforming the benchmark S&P/TSX Composite Total Return Index.CGI's diluted net asset value per share return for 2004, with dividends reinvested, was 26.6%, compared to the 14.5% posted by the benchmark.As in 2003, CGI's return would again place it high in the top quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. of Canadian general equity mutual funds for the year. CGI paid a special year-end capital gains dividend in 2004 of $0.60 per common share, compared with $0.36 in 2003.In addition, four regular quarterly income dividends totalling $0.24 per common share were paid in both years.The 2004 dividends provided a yield to investors of 5.4%, based on the 2004 year-end common share closing price of $15.44, ranking it amongst the highest yielding common stocks on the TSX.The comparable dividend yield for 2003 was 4.7%. At December 31, 2004, net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. were $475,976,000, up 22.3% from the year-end 2003 value of $389,324,000.Strong performance from a broad range of stocks in most sectors resulted in a net gain on investments of $107,737,000 for 2004, compared to $127,769,000 for 2003.The 2004 net gain was made up of a net realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on investments of $45,095,000 and an increase in unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $62,642,000. Net investment income in 2004 of $2,486,000 was up substantially from the $1,257,000 recorded in 2003, primarily as a result of a 65.0% increase in total investment income.Contributing to the increase were special dividends totalling $4.3 million from BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra Properties Ltd. and Brookfield Homes Corporation, as well as the full year use of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the $75 million Series 2 preference share issue, which closed in November 2003.Total expenses were up 60.3% in 2004, largely as a result of the dividends on preference shares and management fees associated with the higher portfolio value. CGI continued to buy in its warrants pursuant to a third renewal of a Normal Course Issuer Bid, buying in Buying in has several meanings. In the securities market it refers to a process by which the buyer of securities, whose seller fails to deliver the securities contracted for, can 'buy in' the securities from a third party with the defaulting seller to make good. a total of 140,100 warrants during 2004.In accordance with the warrant indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. , the warrant exercise price has been reduced from $5.83 to $5.22 as a result of total cash dividends for 2004 being in excess of net income.The change in exercise price is effective February 8, 2005.
FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share amounts)
Twelve Months Ended
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December 31, December 31,
2004 2003
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Net investment income 2,486 1,257
Net realized gain on
investments 45,095 20,745
Change in unrealized gain on
investments 62,642 107,024
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Increase in net assets
resulting from operations 110,223 129,026
Increase in net assets
resulting from operations per
common share - basic 5.38 6.30
Increase in net assets
resulting from operations per
common share - diluted 4.90 5.92
As at
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December 31, December 31,
2004 2003
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Net assets 475,976 389,324
Net asset value per share - basic 23.22 19.00
Net asset value per share - diluted 20.71 17.10
In the United Kingdom, copies of the Corporation's annual report will be made available at the U.K. Transfer Agent, CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company Mellon Trust Company, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.Phone 0208-639-2157. CANADIAN GENERAL INVESTMENTS, LIMITED (TSX:CGI) (TSX:CGI.PR.A) (TSX:CGI.WT) (TSX:CGI.PR.B) (LSE:CGI) (LSE:CGIW) |
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