Integrated Asset Management Corp.

Integrated Asset Management Corp.

February 06, 2015 08:00 ET

Integrated Asset Management Corp. Announces Results for the First Quarter of Fiscal 2015

TORONTO, ONTARIO--(Marketwired - Feb. 6, 2015) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended December 31, 2014.

3 Months Ended 3 Months Ended
December 31, 2014 December 31, 2013
(thousands except per (thousands except per
HIGHLIGHTS share amounts) share amounts)
Assets and Committed Capital
Under Management ("AUM") $1,829,000 $1,898,000
Revenues before the undernoted $2,836 $2,072
Performance fees $530 $-
Investment gain $397 $204
Total revenues $3,763 $2,276
Net performance fees(1) $502 $-
EBITDA(1) $692 $(318 )
Net income (loss) from continuing operations $750 $(271 )
Net gain from sale of discontinued operations $6,512
Net income attributed to common shareholders of the Corporation $763 $6,248
Earnings per share
Continuing operations $0.03 $(0.01 )
Discontinued operations $0.24
Total $0.03 $0.23
(1) Net Performance Fees and Earnings Before Interest, Taxes, Depreciation, Amortization and Investment Gains (Losses) ("EBITDA") are non-IFRS earnings measures used by IAM.

Net income for the quarter ended December 31, 2014 was $0.8 million ($0.03 per share) versus net income of $6.2 million ($0.23 per share) in the quarter ended December 31, 2013. The prior year's quarter includes a net gain on discontinued operations of $6.5 million ($0.24 per share) which represents the sale of BluMont Capital Corporation.

EBITDA (continuing operations as defined in the MD&A) in the latest quarter was $0.7 million versus negative $0.3 million in the same quarter of the last fiscal year. In the current quarter, the Corporation realized net performance fees of approximately $0.5 million from the Managed Futures operations and approximately $0.4 million of fees on a prepayment on a loan which had a positive impact on the Corporation's net income.

AUM were approximately $1.8 billion at December 31, 2014, lower by $45 million from September 30, 2014 due to principal repayments on loans in IAM Private Debt funds.

John Robertson, Chief Executive Officer, said "Our transition to being a focused, purely institutional investment manager is going well and the results reflect that. Management fees were $580,000 higher, or 28%, more than in the same period a year ago; total revenue was 65% higher than in the quarter ended December 31, 2013. The Private Debt Group and the Real Estate Group are working hard to invest the remaining outstanding commitments. There is generally a lag between receiving the commitments and deploying the capital to generate fee-earning assets.

Strong performance by Managed Futures is reflected in both performance fees noted above and in investment gains on the seed capital committed to a third party fund.

Cash declined by approximately $4 million, due to payment of annual bonuses, income taxes and the purchase of 1,028,500 common shares under our Normal Course Issuer Bid ("NCIB"); however, working capital remains virtually unchanged at $17 million.

The Private Debt Group has launched marketing of its 5th fund, just 18 months after the closing of the 4th fund. Preliminary market testing indicates strong interest in the fund and in the first Long Duration Infrastructure Debt Fund. Despite a challenging market, the Real Estate Group has been able to uncover, and bring under contract, some attractive potential investments.

Momentum is building very nicely, and we expect that to continue into the next quarter and beyond."

For detailed financial statements for the quarter, including Management's Discussion and Analysis, please refer to IAM's website at or SEDAR at after February 11, 2015.

IAM is one of Canada's leading alternative asset management companies with approximately $1.8 billion in assets and committed capital under management in real estate, private debt and managed futures as of February 5, 2015.

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