All figures are in Canadian dollars unless otherwise noted. Readers are referred to the sections entitled "Non-IFRS Financial Measures" and "Forward-Looking Statements" at the end of this release.
MONTREAL, March 18, 2015 /CNW Telbec/ - Power Corporation of Canada (TSX: POW) today reported earnings results for the fourth quarter and twelve months ended December 31, 2014.
FOURTH QUARTER RESULTS
Operating earnings attributable to participating shareholders (a non-IFRS financial measure) for the quarter ended December 31, 2014 were $340 million or $0.74 per share, compared with $218 million or $0.47 per share in 2013.
Other items, not included in operating earnings, were a contribution of $29 million mainly comprised of a $50 million gain reflecting the adjustment to fair value of Potentia Solar Inc. upon the Corporation attaining control of the company. Other items in the period also included the Corporation's share of the gain realized by Groupe Bruxelles Lambert (GBL) on the sale of part of its interest in Total SA (Total), partially offset by the Corporation's share of the after-tax charge recorded by IGM Financial Inc. (IGM) related to distributions to clients who did not transfer to lower-priced solutions when eligible. In the corresponding period of 2013, other items represented a contribution of $82 million. Additional details can be found in the table entitled "Other Items" below.
Net earnings attributable to participating shareholders were $369 million or $0.80 per share, compared with $300 million or $0.65 per share in 2013.
Operating earnings attributable to participating shareholders for the twelve months ended December 31, 2014 were $1,238 million or $2.69 per share, compared with $959 million or $2.08 per share in 2013.
Other items, not included in operating earnings, were a contribution of $37 million, compared with $18 million in 2013.
Net earnings attributable to participating shareholders were $1,275 million or $2.77 per share, compared with $977 million or $2.12 per share in 2013.
RESULTS OF POWER FINANCIAL CORPORATION
FOURTH QUARTER RESULTS
Operating earnings attributable to common shareholders (a non-IFRS financial measure) for the quarter ended December 31, 2014 were $525 million or $0.74 per share, compared with $403 million or $0.57 per share in 2013.
Other items, not included in operating earnings, were a net charge of $19 million comprised of Power Financial's share of the after-tax charge recorded by IGM as discussed above, partially offset by the gain realized by GBL on the partial disposal of its interest in Total. In the corresponding period of 2013, other items were a contribution of $190 million.
Net earnings attributable to common shareholders were $506 million or $0.71 per share, compared with $593 million or $0.84 per share in 2013.
Operating earnings attributable to common shareholders for the twelve months ended December 31, 2014 were $2,105 million or $2.96 per share, compared with $1,708 million or $2.40 per share in 2013.
Other items, not included in operating earnings, were a contribution of $31 million, compared with $188 million in 2013.
Net earnings attributable to common shareholders were $2,136 million or $3.00 per share, compared with $1,896 million or $2.67 per share in 2013.
Earlier today, Power Financial announced an increase of the quarterly dividend on its common shares from 35 cents to 37.25 cents per share, payable May 1, 2015.
At December 31, 2014, Power Corporation held a 65.7% economic interest in Power Financial. Power Financial's contribution to Power Corporation's operating earnings was $346 million for the quarter ended December 31, 2014, compared with $265 million in 2013. For the twelve months ended December 31, 2014, Power Financial contributed $1,385 million to Power Corporation's operating earnings, compared with $1,124 million in 2013.
DIVIDENDS ON NON-PARTICIPATING PREFERRED SHARES
On February 19, 2015, as previously disclosed, the Board of Directors declared quarterly dividends on the Corporation's preferred shares, as follows:
|SERIES - STOCK SYMBOL||RECORD DATE||PAYMENT DATE||AMOUNT|
|1986 Series - POW.PR.F||March 25, 2015||April 15, 2015||At a floating rate equal to one quarter of 70% of the average prime rate of two major Canadian chartered banks |
|Series A - POW.PR.A||March 25, 2015||April 15, 2015||35¢|
|Series B - POW.PR.B||March 25, 2015||April 15, 2015||33.4375¢|
|Series C - POW.PR.C||March 25, 2015||April 15, 2015||36.25¢|
|Series D - POW.PR.D||March 25, 2015||April 15, 2015||31.25¢|
|Series G - POW.PR.G||March 25, 2015||April 15, 2015||35¢|
| In accordance with the articles of the Corporation|
DIVIDENDS ON PARTICIPATING SHARES
On February 19, 2015, as previously disclosed, the Board of Directors also declared a quarterly dividend of 29 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable March 31, 2015 to shareholders of record March 10, 2015.
ABOUT POWER CORPORATION
Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, communications and other business sectors in North America, Europe and Asia. To learn more, visit www.powercorporation.com.
(in millions of Canadian dollars, except per share amounts)
|Three months ended||Twelve months ended|
|Contribution to operating earnings from:|
|Other subsidiaries (1)||(14)||(33)||(79)||(83)|
|Results from corporate operations|
|Income from investments||57||33||115||95|
|Operating and other expenses||(36)||(34)||(131)||(125)|
|Dividends on non-participating shares||(13)||(13)||(52)||(52)|
|Operating earnings (attributable to participating shareholders)||340||218||1,238||959|
|Other items (non-operating) - see below||29||82||37||18|
|Net earnings (attributable to participating shareholders)||369||300||1,275||977|
|Earnings per share (attributable to participating shareholders)|
|(1)||Comprising Square Victoria Communications Group Inc., Power Energy Corporation and IntegraMed America, Inc.|
OTHER ITEMS (NON-OPERATING)
(in millions of Canadian dollars)
|Three months ended||Twelve months ended|
|Share of Power Financial's other items:|
|Restructuring and other charges||(4)||(5)||(4)|
|Distributions to clients||(24)||(24)|
|Gain on partial disposal of Total||16||25||45||25|
|Gain on partial exchange of Suez Environnement||11|
|Impairment charges on GDF Suez||(9)|
|Gain on partial disposal of GDF Suez||10|
|Other (charge) income||(5)||2||(7)||(1)|
|Corporate operations of Power Corporation||(21)|
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.
Non-IFRS Financial Measures and Presentation
In analyzing the financial results of the Corporation and consistent with the presentation in previous years, net earnings attributable to participating shareholders are comprised of:
Management uses these financial measures 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, as defined by the Corporation, assist the reader in comparing the current period's results to those of previous periods as items that are not part of ongoing activities are excluded from this non-IFRS measure.
Operating earnings attributable to participating shareholders 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.
The Corporation also uses a non-consolidated basis of presentation to present and analyze its results, financial position and cash flows. In this basis of presentation, Power Corporation's interests in Power Financial and other subsidiaries are accounted for using the equity method. Presentation on a non-consolidated basis is a non-IFRS presentation. However, it is useful to the reader as it presents the parent's corporate operations apart from those of its operating subsidiaries, thereby reflecting the individual respective contributions to the consolidated results.
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, reflect 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 list of factors in the previous paragraph, 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 its most recent Management's Discussion and Analysis and Annual Information Form, filed with the securities regulatory authorities in Canada and available at www.sedar.com.
SOURCE Power Corporation of Canada