QUARTER ENDED DECEMBER 31, 2012  Revenues Expenses LIQUIDITY AND CAPITAL RESOURCES Administration fees were $55.2 million for the quarter ended December 31, 2012, an increase of 5% from $52.5 million for the  same period last year and an increase of 5% from the prior quarter. Net of inter-segment amounts, administration fee revenue  was $31.7 million for the quarter ended December 31, 2012, up from $30.6 million for the quarter ended December 31, 2011 and  from $30.1 million in the previous quarter. The increase from the prior year was primarily attributable to an increase in assets  under administration during the fourth quarter of 2012 leading to higher trailer commissions earned. As mentioned above, other revenues earned by the Asset Administration segment are mainly comprised of non-advisor  related activities. For the quarter ended December 31, 2012, other revenues were $3.7 million, down from $3.8 million for  the fourth quarter of 2011 and up from $3.6 million in the third quarter of 2012. Investment dealer fees were $43.6 million for the quarter ended December 31, 2012, compared to $41.5 million for the  fourth quarter of 2012 and $41.3 million for the quarter ended September 30, 2012.  As detailed in Table 10, dealer gross margin was $11.6 million or 21.1% of administration fee revenue for the quarter ended  December 31, 2012 compared to $11.0 million or 21.0% for the fourth quarter of 2011 and $11.3 million or 21.4% for the  previous quarter. The changes in gross margin from the comparable quarters correspond to the level of payout to fi nancial  advisors on their 12-month rolling administration fee revenues. SG&A expenses for the segment were $13.6 million for the quarter ended December 31, 2012 compared to $12.9 million in  the fourth quarter of 2011 and $12.3 million in the third quarter of 2012, as the spending on marketing initiatives increased  during the quarter. The Asset Administration segment had income before income taxes and non-segmented items of $0.5 million for the  quarter ended December 31, 2012, down from $1.3 million for the fourth quarter of 2011 and from $1.4 million for the prior  quarter. The decline in the fourth quarter of 2012 was due to the increase in SG&A expenses exceeding the increase in  gross margin. As detailed in Table 11, CI generated $548.1 million of operating cash flow in the year ended December 31, 2012 down  $26.6 million from $574.7 million in 2011. CI measures its operating cash flow before the change in working capital and the  actual cash amount paid for interest and income taxes, as these items often distort the cash flow generated during the  period. Working capital is affected by seasonality, interest is primarily paid semi-annually, and tax instalments paid may  differ materially from the cash tax accrual. CI’s main uses of capital are the financing of deferred sales commissions, the  payment of dividends on its shares, the funding of capital expenditures and the repurchase of shares through its normal  course issuer bid program. At current levels of cash flow and anticipated dividend payout rates, CI produces suffi cient  cash to meet its obligations and pay down debt. 36