Capital régional et coopératif Desjardins’ share price is up again to a record high of $12.93
A tangible contribution to local economies
Highlights as at June 30, 2016
- Share price: $12.93, up $0.32 from December 31, 2015
- Non-annualized return: 2.5%
- Net earnings: $40.0 million
- Non-annualized return of investments impacting the Québec economy portfolio: 5.0%
- Non-annualized return of other investments portfolio: 2.6%
Montréal – Capital régional et coopératif Desjardins (CRCD) released its financial results for the first six months of fiscal 2016, reporting a non-annualized return of 2.5% and net earnings of $40.0 million. Effective noon today, the share price is up $0.32 to $12.93. Net assets now total $1,642.5 million.
This performance was driven primarily by positive contributions from the Investments impacting the Québec economy portfolio with a number of its companies reporting solid earnings, and from the Other investments portfolio. These two portfolios are complementary in generating reasonable long-term shareholder returns. This is reflected by the share’s compound return of 4.3%[i] over seven years, the required minimum holding period for CRCD shares, plus the tax credit obtained at purchase time.
“Since CRCD’s inception in 2001, shareholder savings have supported hundreds of promising projects for Québec’s regions,” said CRCD Chairman Jacques Plante. “In return for the Québec tax credit they enjoy, our shareholders help drive growth at local companies.” Mr. Plante notes that investors can make a maximum subscription of $3,000 each during the CRCD share subscription period from September 6 to 26, 2016. For more information on the terms of CRCD’s 2016 issue, see the March 18, 2016 CRCD press release.
A tangible contribution to companies across Québec’s regions
A more precise portrait of the impact of CRCD and its ecosystem on the Québec economy is painted by Luc Ménard, Chief Operating Officer at CRCD’s manager, Desjardins Business Capital régional et coopératif. “Our year‑to-date commitments of $62 million to 54 companies and cooperatives, including 24 in Québec’s resource regions, are making a real difference to community life in those areas. Our support for business transfers to a new generation of entrepreneurs, innovation or keeping companies here at home has one goal in common: energizing Québec entrepreneurship.” As at June 30, 2016, the CRCD portfolio had a solid position with 412 companies, cooperatives and funds all across Québec buoyed by $968 million in committed funds.
CRCD shareholders and business leaders can also take comfort in the fact that 52% of the commitments made by CRCD and its ecosystem consist of equity interests—capital stock investments, allowing partner companies to lower debt levels and have the right resources to thrive.
About Capital régional et coopératif Desjardins
With nearly 100,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,643 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 410 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 68,000 jobs. (www.capitalregional.com)
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[i] The share’s compound returns were 6.0% over one year, 4.1% over three years, 5.2% over five years and 2.4% over ten years. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends or distributions and do not take into account income taxes payable by any shareholder that would have reduced returns. CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns.