CIRI BC Chapter Update
Investor relations officers have to explain their company’s financial statements and valuation to a wide audience. Some analysts and investors have a financial background and read every number in the tables. Others don’t read past the first paragraph in the MD&A and base their investment decision on whether the company’s share price is up or down. IROs must clearly communicate the company’s financial performance so that every investor can make an informed decision, and must understand the broader market dynamics to put the company’s performance in context.
On March 13, CIRI BC hosted nearly 30 people for a professional development session focused on communicating financial statements to investors. Ryan Owsnett, an Audit Partner at KPMG, discussed financial statements and MD&As from the investor relations perspective. Owsnett has over 16 years of experience working with public and private companies, and used real-life examples from a number of industries to demonstrate the different ways that companies can report their quarterly financials. He stressed the importance of the IRO understanding his or her company’s reporting choices in order to encourage investors and analysts to focus on certain key takeaways, and also to draw comparisons with peers’ performances. Understanding the trends and ratios that are relevant to the industry and the company’s stage of development is also important, in order to predict how analysts and investors are modelling the company and the questions they may have.
Ownsett reminded IR practitioners to read (and understand) the notes to the financial statements, since the notes tell the story behind a company’s financial performance. He wrapped up his presentation with some tips on writing the MD&A. The MD&A complements the financial statements by explaining why the results have changed, and the factors that affected the results. The MD&A allows investors to see a company “through the eyes of management,” providing context and insight into a company’s performance and also guidance for future activities and milestones. Ownsett stressed the importance of using plain language and providing balanced disclosure, including a discussion of both the positives and negatives, along with broader industry trends.
The presentation was recorded and is available as an archived webcast on CIRI.org.
CIRI Ontario Chapter Update
Our April Messaging and Managing a Leadership Change event featured: Scott Bonikowsky, Vice President, Corporate, Public and Government Affairs, Tim Hortons; Trevor Johnson, Special Situations, Real Estate Research Analyst and Managing Director, National Bank Financial; and Rudy Sankovic, Senior Vice President, Investor Relations, TD Bank Group. This seasoned panel discussed the view from the trenches and offered some tips on how to lead IR during leadership change, while strengthening the corporate brand and the confidence of the investment community.
CIRI Ontario will present Turning Lists into Better Shareholder Intelligence at its luncheon on May 27. Learn how to use intelligence gleaned from shareholder lists once the Annual Meeting is done in order to better understand the shareholder base and inform the IR strategy. We will also discuss tips and best practices for shareholder identification – a common challenge for IR practitioners.
Voting for CIRI Ontario’s Professional of the Year has closed. The award will be presented at CIRI Ontario’s AGM, also on May 27. For more information about the Award, visit http://www.ciri.org/AboutCIRI/CIRIOverview/CIRIOntarioProfessionaloftheYearAward.aspx.
For more details on CIRI Ontario events, visit ciri.org/education/events/calendar.aspx.
CIRI Quebec Chapter Update
The Quebec Chapter’s April event was an enormous success. BRP: The IPO Experience and Life as a Public Company was attended by over 150 people who engaged in a lively discussion with the President and CEO of Bombardier Recreational Products (BRP), Andre Boisjoli.
Boisjoli was interviewed by Marie-Claude Morin of Les Affaires and questions were asked by both the interviewer and audience members. Boisjoli touched on a number of challenges for his company, including the IPO, the history of Bombardier Recreational Products, and its growth and development in international markets. The event was a great success and plans are already in place for a similar program next year.
The last event of by CIRI Quebec was held on May 22 and, as was the case last year, resulted in a very successful session. Neil Stewart, Editor at Large, IR Magazine, moderated a panel featuring representatives of various companies, where lively interactive discussion on the best and worst of IR practices was debated by members of the IR community. All who attended agreed that sharing experiences from both the supplier's and provider's points of view was very interesting and beneficial to all.
With the CIRI Annual General meeting wrapping up the 2013-2014 programming season, plans are underway for a new season of interesting and informative sessions.