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Power Corporation Reports Second Quarter 2019 Financial Results
Power Corporation of Canada (TSX: POW) today reported earnings results for the three and six months ended June 30, 2019.
Power Corporation
Consolidated results for the period ended June 30
Highlights
- On April 17, 2019, Power Corporation successfully completed its substantial issuer bid to repurchase for cancellation $1.35 billion of its subordinate voting shares representing 9.8% of the issued and outstanding subordinate voting shares.
- On June 1, 2019, Great-West Life & Annuity (GWL&A) completed the sale of substantially all of its individual life insurance and annuity business to Protective Life Insurance Company. The transaction, valued at $1.6 billion, frees up capital and allows Great-West Lifeco Inc. (Lifeco) to focus on the defined contribution retirement and asset management markets in the U.S. segment.
- On July 30, 2019, Power Energy Corporation acquired a 100% equity interest in Nautilus Solar Energy, LLC, a company headquartered in New Jersey, U.S. that acquires, develops, finances and manages distributed solar projects across community, municipal/utility-scale, commercial and industrial markets.
Second Quarter
Net earnings attributable to participating shareholders were $278 million or $0.64 per share, compared with $347 million or $0.75 per share in 2018.
Adjusted net earnings attributable to participating shareholders (a non-IFRS financial measure) were $372 million or $0.86 per share, compared with $347 million or $0.75 per share in 2018.
Other items in 2019, not included in adjusted net earnings, were a net charge of $94 million consisting of the Corporation’s share of Lifeco’s net charge on the sale of GWL&A’s individual life insurance and annuity business in the U.S. and the Corporation’s share of Imerys’ restructuring and other charges.
The Corporation participated in Power Financial Corporation’s (Power Financial) substantial issuer bid to repurchase for cancellation $1.65 billion of its common shares. Power Corporation’s proceeds from its participation in the Power Financial substantial issuer bid were $1.4 billion. As a result, the Corporation’s interest in Power Financial decreased to 64.1% (65.5% at March 31, 2019).
Contributions to Power Corporation’s net earnings and adjusted net earnings were:
|
(in millions of dollars)  |
2019 |
2018 |
|
|
Net Earnings
|
Adjusted Net |
Net Earnings |
|
|
• Power Financial |
283 |
377 |
433 |
|
• Sagard Investment Funds, China AMC and Other investments |
69 |
69 |
(15) |
|
• Corporate and Other subsidiaries |
(74) |
(74) |
(71) |
|
278 |
372 |
347 |
Six Months
Net earnings attributable to participating shareholders were $570 million or $1.27 per share, compared with $872 million or $1.88 per share in 2018.
Adjusted net earnings attributable to participating shareholders were $664 million or $1.48 per share, compared with $872 million or $1.88 per share in 2018.
Other items in the six-month period ended June 30, 2019 were as described above.
Contributions to Power Corporation’s net earnings and adjusted net earnings were:
|
(in millions of dollars) |
2019 |
2018 |
||
|
Net Earnings
|
Adjusted Net |
Net Earnings Adjusted Net Earnings |
||
|
• Power Financial |
633 |
727 |
816 |
|
|
• Sagard Investment Funds, China AMC and Other investments |
80 |
80 |
212 |
|
|
• Corporate and Other subsidiaries |
(143) |
(143) |
(156) |
|
|
570 |
664 |
872 |
||
Power Financial Corporation
Results for the period ended June 30
Second Quarter
Net earnings attributable to common shareholders were $443 million or $0.66 per share, compared with $658 million or $0.92 per share in 2018.
Adjusted net earnings attributable to common shareholders were $589 million or $0.88 per share, compared with $658 million or $0.92 per share in 2018.
Other items in 2019, not included in adjusted net earnings, were a net charge of $146 million consisting of Power Financial’s share of Lifeco’s net charge on the sale of GWL&A’s individual life insurance and annuity business in the U.S. and its share of Imerys’ restructuring and other charges.
Six Months
Net earnings attributable to common shareholders were $979 million or $1.41 per share, compared with $1,244 million or $1.74 per share in 2018.
Adjusted net earnings attributable to common shareholders were $1,125 million or $1.62 per share, compared with $1,244 million or $1.74 per share in 2018.
Other items in the six-month period ended June 30, 2019 were as described above.
Sagard Investment Funds, China AMC and Other Investments
For the period ended June 30
Second Quarter
Income from investments was $69 million, compared with a loss of $15 million in 2018. See the table below for details. Income from investments in the quarter mainly comprised realized gains in Sagard China and a gain related to a private investment fund.
Six Months
Income from investments was $80 million, compared with $212 million in 2018. See the table below for details.
Dividends on Power Corporation Participating Shares
The Board of Directors today declared a quarterly dividend of 40.50 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable September 30, 2019 to shareholders of record September 9, 2019.
Dividends on Power Corporation Non-Participating Preferred Shares
The Board of Directors also declared quarterly dividends on the Corporation’s preferred shares, payable October 15, 2019 to shareholders of record September 24, 2019:
|
Series |
Stock Symbol |
Amount |
Series |
Stock Symbol |
Amount |
|
1986 Series |
POW.PR.F |
Floating rate [1] |
Series C |
POW.PR.C |
36.25¢ |
|
Series A |
POW.PR.A |
35¢ |
Series D |
POW.PR.D |
31.25¢ |
|
Series B |
POW.PR.B |
33.4375¢ |
Series G |
POW.PR.G |
35¢ |
SOURCE Power Corporation of Canada