(January 29 – 12:30 ET) – Mackenzie Financial Corp. is reporting improved results for the third quarter ended Dec. 31, 2000.

The fund company says revenue for the quarter was $201.1 million, an increase of $16 million, or 9%, from $185.1 million for the corresponding period last year. In the current quarter the growth in assets under administration increased management and administration fees by $12.2 million, or 8%.

Expenses for the quarter were $147.3 million, an increase of $5.8 million, or 4%, from $141.5 million for the corresponding period last year. General and administrative expenses increased by $7.2 million, or 20%, to $42.8 million. Mackenzie says it incurred $4 million of costs to defend the company form the unsolicited takeover bid launched C.I. Fund Management Inc.

Trail commissions paid to dealers increased by $4.9 million, or 14%, during the quarter. Amortization of deferred selling commissions declined by $4.1 million, or 9%, a result of an increasing amount of deferred commissions which are now fully amortized and a reduction in redemption fee revenue, which accelerates amortization.

Net earnings for the quarter were $29.3 million, or 22¢ a share, up 30% from the comparative period. Current period earnings were negatively impacted by the costs incurred to defend the takeover bid of Mackenzie in the amount of $2.2 million, net of income taxes of $1.8 million.

Cash flow from operating activities, before the payment of selling commissions and changes in non-cash balances related to operations, increased to $72.3 million or 56¢ a share.

Assets under administration as at December 31 were $36.4 billion, a decrease of $1.3 billion from Dec. 31, 1999.
-IE Staff