Winnipeg – August 1, 2007: IGM Financial Inc. (IGM or the Company) (TSX:IGM) today announced earnings results for the second quarter of 2007.
Net income for the three months ended June 30, 2007 was $215.9 million compared to adjusted net income of $186.7 million in 2006, an increase of 15.6%. Earnings per share were 81 cents in 2007 compared to adjusted earnings per share of 70 cents in 2006, an increase of 15.7%. Adjusted net income and earnings per share for the three months ended June 30, 2006 excluded a non-cash income tax benefit. Net income for the three months ended June 30, 2006 without adjustment totalled $200.4 million and earnings per share on this basis were 75 cents.
Net income for the six months ended June 30, 2007 was $426.4 million compared to adjusted net income of $372.0 million in 2006, an increase of 14.6%. Earnings per share were $1.59 in 2007 compared to adjusted earnings per share of $1.39 in 2006, an increase of 14.4%. Net income for the six months ended June 30, 2006 without adjustment totalled $385.7 million and earnings per share on this basis were $1.44.
Total assets under management at June 30, 2007 were $125.9 billion. This compares with total assets under management of $103.7 billion at June 30, 2006, an increase of 21.3%.
Gross revenues for the three months ended June 30, 2007 were $721.9 million, compared to $636.6 million in the prior year. Gross revenues for the six months ended June 30, 2007 were $1.44 billion, compared to $1.28 billion in the prior year. Operating expenses were $412.4 million for the quarter and $822.9 million for the six months, compared to $369.7 million and $743.5 million, respectively, in 2006.
Shareholders' equity at June 30, 2007 was $4.0 billion, compared to $3.8 billion at December 31, 2006. Return on average common equity for the six months ended June 30, 2007 was 21.5% compared with adjusted return on average common equity of 21.1% for the same period in 2006.
Investors Group Operations
Investors Group's mutual fund assets under management at June 30, 2007 were $61.3 billion compared to $51.8 billion at June 30, 2006, an increase of 18.3%.
The number of Investors Group Consultants was 4,093 at June 30, 2007 up from 3,917 at December 31, 2006. Investors Group has experienced twelve consecutive quarters of growth resulting in an increase of more than 27% in the Consultant network since June 30, 2004.
“We are pleased to see continuous growth in our Consultant network each quarter over the last three years,” said Murray J. Taylor, President and Chief Executive Officer of Investors Group Inc. “A 59% increase in net sales over the first six months of last year combined with strong investment performance has resulted in record setting assets under management” Mutual fund sales for the second quarter of 2007 were $1.7 billion compared to $1.5 billion in the prior year and mutual fund net sales for the second quarter were $401 million compared to $165 million a year ago. Year-to-date mutual fund sales for 2007 were $4.0 billion compared to $3.4 billion in the prior year and mutual fund net sales were $1.4 billion compared to $883 million a year ago.
Investors Group's twelve month trailing redemption rate (excluding money market funds) was at a record low level of 7.4% at June 30, 2007, down from 7.9% at December 31, 2006 and down from 8.4% at June 30, 2006.
Mackenzie Operations
Mackenzie’s total assets under management at June 30, 2007 totalled $65.0 billion. This compares with assets under management of $52.2 billion at June 30, 2006, an increase of 24.5%. The prior period figure does not include assets from Mackenzie’s acquisition of the Cundill Group. That transaction closed September 22, 2006 and the institutional assets were valued at $3.3 billion at that time. Mutual fund assets under management at June 30, 2007 were $48.5 billion, an increase of 14.4%, compared to $42.4 billion one year ago.
“We continue to benefit from positive global stock market trends, net sales and new product offerings with assets under management increasing 24.5% year over year,” said Charles R. Sims, President and Chief Executive Officer of Mackenzie Financial Corporation.
Total sales for the second quarter of 2007 were $3.3 billion compared to $2.7 billion in the prior year. Total net sales for the second quarter were $709 million compared to net sales of $339 million in the prior year. Total year-to-date sales for 2007 were $7.0 billion compared to $6.6 billion in the prior year. Total net sales were $1.3 billion compared to $1.6 billion in the prior year.
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, Series “A” payable on September 30, 2007 to shareholders of record on August 30, 2007 and has declared an increase of 3.25 cents per share in the quarterly dividend from 42.75 cents to 46.0 cents per share on the Company’s common shares payable on October 26, 2007 to shareholders of record on September 24, 2007.
Forward-Looking information and NON-GAAP financial measures
This Release may contain forward-looking statements about the Company, including its business operations, 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”, “plans”, “believes”, “estimates”, “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”. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), 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 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 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, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions and integrate acquisitions and the Company’s success in anticipating and managing the foregoing risks. The reader is cautioned 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. Other than as specifically required by applicable law, the Company has no specific intention to update any forward-looking statements whether as a result of new information, future events or otherwise.
This release may also contain non-GAAP financial measures. Terms by which non-GAAP financial measures are identified include but are not limited to “adjusted net income”, “adjusted earnings per share”, “adjusted return on average common equity”, “net income without adjustment” and other similar expressions. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, non-GAAP financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Please refer to the attached Financial Highlights for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP.
A review of activities and performance for IGM Financial Inc., together with financial details and a management discussion, will be published in the Company’s 2007 Second Quarter Report to Shareholders which should be mailed to shareholders on or about August 13, 2007.
Financial Statements and Notes
Financial Statements and Notes [ PDF: 17 K / 2 pages ]
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 over $125 billion in total assets under management. 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 Corporation group of companies.
For more information contact:
Ron Arnst
Media Relations
(204) 956-3364
|
|
Media Note: A live webcast of IGM’s Analyst conference call for the Second Quarter 2007 will be held Thursday, August 2, 2007, at 9:30 A.M. (ET) at www.igmfinancial.com. Media and interested parties may alternatively choose to listen to the live analyst teleconference call by dialing 1-888-789-0089 or (416) 695-5261. |
