IGM Financial Inc. Reports Third Quarter Earnings.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- Readers are referred to the disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the regarding Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information at the end of this Release. IGM Financial IGM Financial Inc. is one of Canada's premier personal financial services companies, and the country's largest manager and distributor of mutual funds and other managed asset products, with $121 billion in total assets under management (as at January 31, 2007). Inc. (IGM) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :IGM) today announced earnings results for the third quarter of 2005. Net income for the three months ended September September: see month. 30, 2005 was $176.6 million, compared to $153.8 million in 2004, an increase of 14.8%. Earnings per share were 66 cents compared to 58 cents, an increase of 13.8%. For the nine months ended September 30, 2005 net income was $505.2 million compared to $454.3 million in 2004, an increase of 11.2%. Earnings per share were $1.90 compared to $1.71 in 2004, an increase of 11.1%. Gross revenues for the three months ended September 30, 2005 were $587.0 million, compared to $527.1 million in the prior year. Gross revenues for the nine months ended September 30, 2005 were $1.74 billion, compared to $1.57 billion last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $341.8 million for the quarter and $1.02 billion for the nine months, compared with $305.7 million and $914.5 million, respectively, in 2004. Mutual fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. under management at September 30, 2005 totalled $91.0 billion, compared to $78.6 billion at September 30, 2004, an increase of 15.8%. Total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. at September 30, 2005 totalled $96.6 billion, compared to $81.4 billion at September 30, 2004, an increase of 18.7%. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at September 30, 2005 was $3.37 billion, compared to $3.15 billion at December December: see month. 31, 2004. Return on average common equity for the nine months was 19.9% compared with 19.7% for the same period in 2004. Investors Group Operations Mutual fund sales for the third quarter were $1.21 billion compared to $1.00 billion in the prior year. For the quarter, mutual fund net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $56 million compared to net redemptions of $52 million in 2004 and net sales of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. mutual funds (excluding money market funds) were $10 million compared to net redemptions of $96 million in 2004. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. mutual fund sales were $4.1 billion compared to $3.6 billion in the prior year and mutual fund net sales were $524 million compared to $264 million a year ago. Net sales of long-term funds were $361 million compared to $146 million in the prior year. "Our Consultant network has grown in each of the last five quarters," said Murray Murray, river, Australia Murray, principal river of Australia, 1,609 mi (2,589 km) long, rising in the Australian Alps, SE New South Wales, and flowing westward to form the New South Wales–Victoria boundary. J. Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. , President and Chief Executive Officer of Investors Group Inc. "A 99% increase in year to date mutual fund net sales over 2004 combined with strong investment performance has resulted in record levels of assets under management." Investors Group's twelve month trailing redemption rate (excluding money market funds) was 9.1% at the end of the quarter, down from 9.2% at the same time last year. The corresponding rate at September 30, 2005 for all other members of the Investment Funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company Institute of Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of (IFIC IFIC International Food Information Council IFIC Investment Funds Institute of Canada IFIC International Finance Investment & Commerce (Bank Limited; Bangladesh) IFIC Iran Foreign Investment Co. IFIC Internet Finance International Corporation ) was 16.8%. Investors Group's mutual fund assets under management at September 30, 2005 were $49.0 billion, an increase of 16.0%, compared to $42.3 billion at September 30, 2004. The number of Investors Group Consultants was 3,560 at September 30, 2005. Investors Group has experienced five consecutive quarters of growth resulting in an increase of 11.0% in the Consultant Network since June June: see month. 30, 2004. Mackenzie Mackenzie, river, c.1,120 mi (1,800 km) long, issuing from Great Slave Lake, Northwest Territories, Canada, and flowing generally NW to the Arctic Ocean through a great delta. Between Great Slave Lake and Lake Athabasca it is known as the Slave River. Operations Mackenzie Financial recorded mutual fund sales of $1.7 billion for the third quarter compared to $1.4 billion for the same quarter last year. Mutual fund net sales were $110 million for the third quarter in both 2005 and 2004. Net sales of long-term funds (excluding money market and managed yield funds) were $85 million for the quarter, compared with $133 million in 2004. Year-to-date mutual fund sales were $5.9 billion compared to $5.1 billion in the prior year. Mutual fund net sales were $663 million compared to $672 million in the prior year. Net sales of long-term funds (excluding money market and managed yield funds) were $684 million for the period compared to $730 million in 2004. "Mackenzie's assets under management hit a record high during the quarter, driven by investment returns and continued sales momentum," said Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation. "Mackenzie continues to focus on providing advisors and investors with high quality investment solutions, as Canadians increasingly demonstrate a desire to utilize financial advice in their long term investing plans," said Sims. Mackenzie Financial's twelve month trailing redemption rate for long-term funds was 15.1% at the end of September 2005, compared to 13.7% at the end of September 2004. The corresponding rate at September 30, 2005 for all other members of IFIC was 16.1%. Mackenzie Financial's mutual fund assets under management at September 30, 2005 were $40.2 billion, an increase of 15.0%, compared to $35.0 billion one year ago. Total assets under management at September 30, 2005 totalled $47.9 billion compared to $39.3 billion at September 30, 2004, an increase of 21.9%. Dividends The Board of Directors has declared a quarterly dividend of $0.359375 per share on the Company's 5.75% Non-Cumulative First Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , Series "A" payable on December 31, 2005 to shareholders of record on November 30, 2005 and has declared a dividend of 34.5 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on the Company's common shares payable on January 27, 2006 to shareholders of record on December 30, 2005. Forward-Looking Information This Release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the Company, including its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , strategy and expected financial performance and condition. 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", "intends", "plans", "believes", "estimates" or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. ), ongoing business strategies or prospects, and possible future Company action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as general economic, political and market factors in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, and the Company's ability to complete strategic transactions and integrate acquisitions. We caution that the foregoing list of important factors is not exhaustive. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. IGM Financial Inc. is one of Canada's premier personal financial services companies, and the country's largest manager and distributor of mutual funds and other managed asset products. Its activities are carried out principally through Investors Group, Mackenzie Financial and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Company group of companies. Media Note: A live webcast of IGM's Analyst conference call for the Third Quarter 2005 will be held today, Thursday, November 3, 2005, at 3:00 P.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to today's live analyst teleconference call by dialing 1-888-789-0089 or (416) 695-5261.
IGM FINANCIAL INC.
---------------------------------------------------------------------
---------------------------------------------------------------------
Consolidated Statements of Income
(unaudited)
(in thousands of dollars, Three months ended Nine months ended
except shares and per share September 30 September 30
amounts) 2005 2004 2005 2004
---------------------------------------
Fee and net investment income
Management $420,516 $371,686 $1,217,628 $1,108,467
Administration 74,481 74,228 229,362 228,024
Distribution 53,406 44,448 156,498 118,275
Net investment income and
other 38,594 36,756 135,767 116,238
---------------------------------------
Total fee and net investment
income 586,997 527,118 1,739,255 1,571,004
---------------------------------------
Operating expenses
Commission expense 183,491 155,305 536,972 452,929
Non-commission expense 135,611 126,553 414,124 390,046
Interest expense 22,746 23,889 67,676 71,493
---------------------------------------
Total operating expenses 341,848 305,747 1,018,772 914,468
---------------------------------------
Income before income taxes
and non-controlling interest 245,149 221,371 720,483 656,536
Income taxes 68,365 66,969 214,033 201,499
---------------------------------------
Income before non-controlling
interest 176,784 154,402 506,450 455,037
Non-controlling interest 229 571 1,269 731
---------------------------------------
Net income $176,555 $153,831 $505,181 $454,306
---------------------------------------------------------------------
---------------------------------------------------------------------
Average number of common shares
(in thousands)
- Basic 264,581 264,634 264,595 264,379
- Diluted 266,813 266,186 266,586 265,954
Earnings per share (in dollars)
- Basic $0.67 $0.58 $1.91 $1.72
- Diluted $0.66 $0.58 $1.90 $1.71
---------------------------------------------------------------------
IGM FINANCIAL INC.
---------------------------------------------------------------------
---------------------------------------------------------------------
Financial Highlights
Three months ended Nine months ended
September 30 September 30
2005 2004 Change 2005 2004 Change
---------------------------------------------------------------------
Net income ($millions) $176.6 $153.8 14.8% $505.2 $454.3 11.2%
Diluted earnings per share 0.66 0.58 13.8 1.90 1.71 11.1
Return on equity 19.9% 19.7%
Dividends per share 0.345 0.300 15.0 0.990 0.850 16.5
---------------------------------------------------------------------
($ millions)
Mutual funds
Investors Group
Sales $1,205 $995 21.2% $4,111 $3,620 13.6%
Net sales (redemptions) 56 (52) N/M 524 264 98.7
Assets under management 49,045 42,296 16.0
Mackenzie
Sales 1,721 1,438 19.7 5,892 5,092 15.7
Net sales 110 110 0.7 663 672 (1.3)
Assets under management 40,215 34,979 15.0
Investment Planning Counsel
Sales 91 87 4.6 317 158(1) N/A
Net sales 48 60 (20.0) 186 109(1) N/A
Assets under management 1,772 1,359 30.4
Combined mutual fund assets
under management (2) 90,996 78,605 15.8
Insurance in force
(face amount) 36,368 35,217 3.3
Securities operations
assets under administration 7,476 6,618 13.0
Mortgages serviced 5,909 6,102 (3.2)
---------------------------------------------------------------------
Employees 3,222 3,171 1.6%
---------------------------------------------------------------------
---------------------------------------------------------------------
(1) From date of acquisition.
(2) Adjusted for $36 million in inter-segment assets.
(2004 - $29 million).
IGM Financial Inc. (TSX:IGM) |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion