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Integrated Asset Management Corp. Announces Results for the First Quarter of Fiscal 2018 and Declares Dividend

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TORONTO, Feb. 07, 2018 (GLOBE NEWSWIRE) -- Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended December 31, 2017.

     
 

HIGHLIGHTS
3 Months Ended
December 31, 2017
    (thousands except per share amounts)   
3 Months Ended
December 31, 2016
    (thousands except per share amounts)   
Invested Capital $1,818,000 $1,629,000
Committed Capital to be Invested $572,000 $896,000
 Total Assets Under Management ("AUM") $2,390,000 $2,525,000
Revenues before the undernoted $3,461 $2,766
Investment gain (loss) $1 $(476)
Total revenues $3,462 $2,290
Adjusted EBITDA(1) $685 $72
Net income ( loss) from continuing operations $460 $ (22)
Loss from discontinued operations held for sale $- $(8)
Net gain from sale of discontinued operations $- $-
    Net income (loss) attributed to common shareholders of the Corporation    $474 $(26)
Earnings per share    
Continuing operations $0.02 $(0.00)
Discontinued operations - $(0.00)
Total $0.02 $(0.00)

 (1) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation ("Adjusted EBITDA") is a non-IFRS earnings measure used by IAM.


John Robertson, President and CEO, said, "We are very pleased with the results as the first quarter is traditionally a slow quarter as it is cut short by the holiday season. The outlook for the rest of the year is very encouraging."

The Corporation reported a net income from continuing operations for the quarter ended December 31, 2017 of $0.5 million ($0.02 per share) versus net loss from continuing operations in the quarter ended December 31, 2016 of $0.0 million ($0.00 per share). Management fees and other income were higher, at $3.5 million versus $2.8 million in same quarter in fiscal 2017. The increase in management fees and other income compared to fiscal 2017 is the result of deployment of commitments at higher rates and interest income from investments in funds managed by the Corporation. The investment loss of $0.5 million in the comparable quarter of the previous year relates to investments that have fully been redeemed and relate to a discontinued subsidiary.

Adjusted EBITDA improved to $0.7 million from $0.1 million in the same quarter of the previous fiscal year. Cash flow from operations was $0.5 million this year compared to $0.2 million in the previous year.  The Corporation reported consolidated expenses for the quarter of $2.8 million, up $0.4 million from $2.4 million in the first quarter of fiscal 2017. Expenses were higher relative to the comparative quarter in the previous year primarily due to an increase in the employee bonus accrual as a result of increased profits and higher professional fees.

Assets and committed capital under management ("AUM") for the quarter ended December 31, 2017 was down $84 million at $2.4 billion compared to $2.5 billion at September 30, 2017. Of that, approximately $570 million was committed but not yet invested capital from real estate, private debt and infrastructure debt operations.

John Robertson, President and CEO, said, "Results are unfolding as expected. Revenue before investment gain (loss) was up 25% over those of the same period in fiscal 2017. Net income was $460,000, as opposed to a loss in the comparable period of the prior year. The loss on investment in the first quarter of fiscal 2017 related to seed capital in a fund managed by a discontinued subsidiary. This investment was liquidated in January 2017.

"AUM increases significantly in years that new funds are raised. Our Private Debt Group's AUM declines as distribution to investors of routine principal repayments received on loans, until the new funds are raised. In 2018 the Private Debt Group is raising Fund VI and a high yield fund. AUM declined as expected as our Real Estate Group is in the process of winding up GPM 10 and sold six of the properties during the quarter. In addition the Real Estate Group's open end fund raises capital quarterly. Our target is to raise another $1 billion of committed capital in the next 12 months."

The Board of Directors of the Corporation has approved payment of a quarterly cash dividend in the amount of $0.02 per outstanding share, totaling approximately $0.6 million based on the number of shares outstanding at that date. This dividend will be paid on March 20, 2018 to shareholders of record on February 27, 2018.

For detailed financial statements for the quarter, including Management's Discussion and Analysis, please refer to IAM's website at www.iamgroup.ca or SEDAR at www.sedar.com after February 7, 2018.

IAM is one of Canada's leading alternative asset management companies with approximately $2.4 billion in assets and committed capital under management in real estate and private debt as of February 6, 2018.

For further information, please contact
Tom Felkai, CFO
416 933 8263
tfelkai@iamgroup.ca

 

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