CALGARY,
Nov. 12, 2013 /CNW/ - Olympia
Financial Group Inc. (TSX: OLY) today announced its operating and
financial results for the period ended September 30, 2013 as well as a potential special
dividend and anticipated changes to its 2014 quarterly dividend
policy.
Third Quarter Results
The unaudited condensed interim financial
statements and notes, as well as management's discussion and
analysis, are now available on SEDAR (www.sedar.com).
Highlights for the three month period ended
September 30, 2013 include the
following:
- total revenue increased 9%, to $11.50
million from $10.58 million,
compared to the same quarter of the previous year;
- earnings from operations (before income tax and interest)
decreased 18%, to $0.80 million from
$0.97 million, compared to the same
quarter of the previous year;
- earnings before income taxes (including earnings from
operations and interest) increased 4%, to $2.23 million from $2.15
million, compared to the same quarter of the previous year;
and
- total interest increased 22%, to $1.44
million from $1.18 million,
compared to the same quarter of the previous year.
Potential Special Dividend and Anticipated
Changes to the 2014 Quarterly Dividend Policy
As previously disclosed, Olympia has entered into an agreement to sell
its Corporate and Shareholder Services division (the "CSS Sale
Transaction") for gross proceeds of $43
million, subject to certain post-closing adjustments.
After paying certain executive management profit sharing
entitlements and closing costs, Olympia anticipates receiving after-tax net
proceeds of approximately $29.6
million (assuming no post-closing adjustments are
required). The CSS Sale Transaction is currently expected to
close on or about December 12,
2013. In the event that the CSS Sale Transaction is
completed, Olympia expects to
distribute the majority of the after-tax net proceeds, up to a
maximum of $10.00 per common share,
to shareholders as a special dividend. In the event the CSS
Sale Transaction is completed as contemplated, the details of any
special dividend to shareholders will be included in a subsequent
press release. For greater certainty, the Board of Directors
has not declared a special dividend at this time but rather is
advising of its intention to do so in the event that the CSS Sale
Transaction is completed. Olympia's dividend reinvestment plan would be
suspended and would not be eligible for use by shareholders with
respect to any special dividend that is declared in connection with
the completion of the CSS Sale Transaction.
In the event that the CSS Sale Transaction is
completed and a special dividend is declared and paid to
shareholders as contemplated above, the Board intends on changing
the company's dividend policy whereby the regular quarterly
dividend rate will be decreased to $0.50 per share on its common shares from the
current rate of $0.70 per share, a
decrease of 28.50%. Pursuant to the current dividend policy,
Olympia pays regular quarterly
dividends on its common shares on or about January 31, April
30, July 31 and October 31. As at the date hereof,
Olympia has an aggregate of
2,486,552 common shares issued and outstanding.
In the event the CSS Sale Transaction is not
completed, Olympia would not be
declaring a special dividend and anticipates that it would leave
the current dividend policy unchanged (being a quarterly dividend
of $0.70 per share).
Statements Regarding Forward Looking
Information
Certain portions of this press release as
well as other public statements by the Corporation contain "forward
-looking information" within the meaning of applicable Canadian
securities legislation, which is also referred to as "forward
-looking statements", which may not be based on historical fact.
Wherever possible, words such as "will", "plans," "expects,"
"targets," "continue", "estimates," "scheduled," "anticipates,"
"believes," "intends," "potential," "may," and similar expressions
or statements that certain actions, events or results "may,"
"could," "would," "might" or "will" be taken, occur or be achieved,
have been used to identify forward-looking information.
Forward-looking statements contained in the Corporation's public
disclosure include, without limitation, the Corporation's earnings
expectations, fee income, expense levels, dividend amounts, general
economic, political and market factors in North America and internationally, interest
and foreign exchange rates, global equity and capital markets,
business competition, technological change, changes in government
regulations, unexpected judicial or regulatory proceedings,
catastrophic events, and the Corporation's ability to complete
strategic transactions and other factors. In addition, this
news release contains forward looking statements relating to: the
anticipated after-tax net proceeds to the Corporation from the sale
of the Corporation's transfer agency and corporate trust
businesses; the anticipated waiver or satisfaction of conditions to
closing; the anticipated closing date for the transaction; and the
anticipated distribution of certain after-tax net proceeds to
shareholders as a special dividend.
All material assumptions used in making
forward-looking statements are based on management's knowledge of
current business conditions and expectations of future business
conditions and trends, including their knowledge of the current
interest rate and liquidity conditions affecting the Corporation
and the Canadian economy. Certain material factors or assumptions
are applied by the Corporation in making forward-looking
statements, including without limitation, factors and assumptions
regarding interest and foreign exchange rates, availability of key
personnel, the effect of competition, government regulation of its
business, computer failure or security breaches, future capital
requirements, acceptance of its products in the marketplace, its
operating cost structure, the current tax regime and the ability of
the Corporation and Computershare to obtain necessary third party
and governmental approvals, as applicable, to secure the employment
of the requisite employees of the Corporation in connection with
Computershare's assumption of the Corporation's transfer agency and
corporate trust businesses, and retain existing customers and
generate new business.
Forward-looking statements reflect the
Corporation's current views with respect to future events and are
subject to a number of risks and uncertainties. Actual results may
differ materially from results contemplated by the forward-looking
statements. Readers should not place undue reliance on such
forward-looking statements, as they reflect the Corporation's
current views with respect to future events and are subject to
risks and uncertainties and are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the
Corporation, are inherently subject to significant business,
economic, regulatory, competitive, political and social
uncertainties and contingencies. Many factors could cause the
Corporation's actual results, performance or achievements to be
materially different from any future results, performance, or
achievements that may be expressed or implied by such
forward-looking statements, including among others a significant
downturn in capital markets or the economy as a whole, reduced
large-volume foreign exchange revenue, errors or omissions by the
Corporation in providing services to its customers or the inability
to maintain customer satisfaction with services provided,
significant changes in foreign currency exchange rates, extreme
price and volume fluctuations in the stock markets, significant
increases in the cost of complying with applicable regulatory
requirements, civil unrest, economic recession, war and acts of
terrorism which may adversely impact the North American and global
economic and financial markets, inability to raise funds through
public or private financing in the event that the Corporation
incurs operating losses or requires substantial capital investment
in order to respond to unexpected competitive pressures,
significant changes in interest rates, failure by the Corporation
to meet ongoing regulatory requirements, the failure of
counterparties to honour their financial or contractual obligations
to the Corporation, failure by the Corporation to generate or
obtain sufficient cash or cash equivalents in a timely manner and
at a reasonable price or to meet its commitments as they become
due, failure by the Corporation to attract and to retain the
necessary employees to meet its needs, failure of a requisite
number of the Corporation's employees to accept employment with
Computershare in connection with the assumption of the
Corporation's transfer agency and corporate trust businesses,
failure by the Corporation to adequately monitor the services
provided by third party service providers or to establish
alternative arrangements if required, a failure of the computer
systems of the Corporation or one or more of its service providers
or the risks detailed from time-to-time in the Corporation's
quarterly filings, annual information forms, annual reports and
annual filings with securities regulators. Forward-looking
information will only be updated as required pursuant to the
requirements of applicable securities laws.
About Olympia Financial Group Inc.
Olympia Financial Group Inc. ("OFGI") conducts
most of its operations through its wholly owned subsidiary Olympia
Trust Company, a non-deposit taking trust company. Olympia
Trust Company is licensed to conduct trust activities in
Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince
Edward Island, New
Brunswick and Nova
Scotia. Olympia Trust Company administers
self-directed registered accounts, acts as a registrar and transfer
agent for public and private issuers and offers foreign currency
exchange services. OFGI also offers private health services
plans through its wholly-owned subsidiary Olympia Benefits Inc.
OFGI's common shares are listed on the Toronto
Stock Exchange under the symbol "OLY".
SOURCE Olympia Financial Group Inc.