TORONTO, ONTARIO--(Marketwired - Feb. 7, 2014) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended December 31, 2013.
| 3 Months Ended | 3 Months Ended | |||||
| December 31, 2013 | December 31, 2012 | |||||
| (thousands except per | (thousands except per | |||||
| HIGHLIGHTS | share amounts) | share amounts) | ||||
| Assets and Committed Capital Under Management ("AUM") | $ | 1,898,000 | $ | 1,886,000 | ||
| Revenues before the undernoted | $ | 2,072 | $ | 2,387 | ||
| Performance fees | $ | - | $ | 2 | ||
| Investment gain | $ | 204 | $ | 156 | ||
| Total revenues | $ | 2,276 | $ | 2,545 | ||
| Net performance fees(1) | $ | - | $ | 2 | ||
| EBITDA(1) | $ | (318 | ) | $ | 22 | |
| Net Income (loss) from continuing operations | $ | (271 | ) | $ | 236 | |
| Gain on sale of discontinued operations | $ | 6,684 | $ | - | ||
| Loss from discontinued operations | $ | (172 | ) | $ | (94 | ) |
| Net income attributed to common shareholders of the Corporation | $ | 6,248 | $ | 140 | ||
| Earnings per share | $ | 0.23 | $ | 0.00 | ||
| (1)Net Performance Fees and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") are non-IFRS earnings measures used by IAM. | ||||||
The financial results for the quarter reflect the Corporation's sale of its 100% ownership interest in BluMont Capital Corporation ("BluMont Capital") which closed in December 2013. On closing, the Corporation received cash consideration of approximately $6.6 million.
The Corporation expects to receive in February 2014 additional cash consideration from the sale of approximately $3.1 million reflecting the net performance fees (as defined) realized by BluMont Capital as at December 31, 2013 and closing adjustments. The Corporation has recorded a gain on the sale of BluMont Capital of approximately $6.7 million, net of income taxes. Earnings per share from discontinued operations was $0.24 per share.
AUM were approximately $1.9 billion at December 31, 2013 relatively unchanged from September 30, 2013. The principal changes in AUM between December 31, 2012 and December 31, 2013 are the sale of BluMont Capital which reduced AUM by approximately $276 million (at September 30, 2013) and the final closing of a private corporate debt fund in October 2013 which raised $387 million in commitments.
Management fees and other income were $2.0 million in the latest quarter, down $0.4 million from $2.4 million in the comparable quarter of fiscal 2013. The decrease is due to reduced commitment fees as a result of nominal deployment of commitments during the latest quarter by both the real estate and private debt funds.
EBITDA for the three months ended December 31, 2013 was negative $0.3 million, down from the prior year's comparable quarter of $0.2 million. Earnings per share from continuing operations was $(0.01) per share in the latest quarter compared with $0.01 per share in the prior year's quarter. We expect that EBITDA will improve as committed capital is invested, thus generating increased management fees.
With respect to the funds, the Private Debt Group has committed 27% of Fund IV which closed in October 2013. They are making progress in raising the Long Term Fund and expect a first close in the fiscal 3rd Quarter and a final close in the fiscal 4th Quarter. The Real Estate Group has virtually completed the investment of Fund 12 and is expecting to announce the first close of the 13th fund (our first open end Fund) in February.
John Robertson, Chief Executive Officer, said, "With the sale of BluMont Capital, we are focused on growing our highly successful and profitable institutional businesses. With enhanced cash resources from the proceeds of the BluMont sale, we will be actively expanding our Real Estate and Private Debt businesses as well as seeking accretive acquisitions in the institutional alternative investment space."
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 11, 2013.
IAM is one of Canada's leading alternative asset management companies with approximately $1.9 billion in assets and committed capital under management in real estate, private debt, managed futures and private equity.
Contact Information:
Stephen Johnson
CFO
416 933 8278
sjohnson@iamgroup.ca
www.iamgroup.ca