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## QUARTER ENDED DECEMBER 31, 2012 

For the quarter ended December 31, 2012, CI reported net income of $95.0 million ($0.34 per share) versus $87.8 million ($0.31 per share) for the quarter ended December 31, 2011 and $91.3 million ($0.32 per share) for the quarter ended September 30, 2012. Average assets under management for the fourth quarter of 2012 were up 2.6% from the level of the third quarter and 7.2% from the fourth quarter of 2011. 

Pre-tax operating earnings were $164.0 million in the fourth quarter of 2012, an increase of 4% from $157.3 million in the fourth quarter of 2011 and 2% higher than the $160.0 million in the prior quarter. These increases refl ect the change in assets under management as well as the change in asset mix, which reduced management fee revenues. 

For the fourth quarter of 2012, CI recorded $34.3 million in income tax expense for an effective tax rate of 26.5%, compared to $35.2 million in the fourth quarter of 2011 for an effective tax rate of 28.6%. The third quarter of 2012 included $34.3 million in income tax expense, for an effective tax rate of 27.3%. The decrease in the year over year effective tax rates refl ects the decrease in statutory tax rates. 

For the quarter ended December 31, 2012, redemption fee revenue was $6.1 million compared with $6.9 million for the quarter ended December 31, 2011 and $6.5 million from the quarter ended September 30, 2012. The decrease from these prior periods relates to a decrease in redemptions from deferred load funds. 

## TABLE 7: EBITDA AND EBITDA MARGIN 

CI uses EBITDA (earnings before interest, taxes, depreciation and amortization) to assess its underlying profi tability prior to the impact of its financing structure, income taxes and the amortization of deferred sales commissions, fund contracts and capital assets. This also permits comparisons of companies within the industry, before any distortion caused by different financing methods, levels of taxation and mix of business between front-end and back-end sales commission assets under management. EBITDA is a measure of operating performance, a facilitator for valuation and a proxy for cash fl ow. 

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