Integrated Asset Management Corp.
TSX : IAM

Integrated Asset Management Corp.

February 05, 2016 07:30 ET

Integrated Asset Management Corp. Announces Results for the First Quarter of Fiscal 2016

TORONTO, ONTARIO--(Marketwired - Feb. 5, 2016) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended December 31, 2015.

IAM's Debt Group closes Fund V at $667 million increasing AUM to $2.4 billion



HIGHLIGHTS
3 Months Ended
December 31,
2015
(thousands
except
per share amounts)
3 Months Ended
December 31,
2014
(thousands
except
per share amounts)
Assets and Committed Capital Under Management ("AUM")
$2,385,000

$1,829,000
Revenues before the undernoted $2,630 $2,836
Performance fees $445 $530
Investment gain $60 $397
Total revenues $3,135 $3,763
Net performance fees(1) $357 $502
EBITDA(1) $(350) $692
Net income (loss) from continuing operations
$(126)

$750
Net gain from sale of discontinued operations
$291

$-
Net income attributed to common shareholders of the Corporation $152 $763
Earnings per share
Continuing operations $(0.00) $0.03
Discontinued operations $0.01 $0.00
Total $0.01 $0.03
(1)Net Performance Fees and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") are non-IFRS earnings measures used by IAM

Net loss for the quarter ended December 31, 2015 from continuing operations was $0.1 million ($0.00 per share) versus net income from continuing operations in the quarter ended December 31, 2014 of $0.8 million ($0.03 per share). The current year's quarter includes a gain on discontinued operations of $0.3 million ($0.01 per share) which represents the Corporation's share of performance fees realized by the purchaser of BluMont Capital Corporation. This represents the final contingent payment by the purchaser of BluMont Capital Corporation.

Revenue in the quarter was lower year over year primarily due to lower realized performance fees, lower gain on investment and lower revenue in the Private Debt Group as there were no loan closings in the quarter.

EBITDA (continuing operations as defined in the MD&A) in the latest quarter was negative $0.4 million versus a positive $0.7 million in the same quarter of the last fiscal year. EBITDA was adversely affected by a staffing change cost of $0.7 million and lower earnings in the Private Debt Group for the quarter versus the same quarter in the previous year.

In the current quarter, the Corporation realized net performance fees of approximately $0.4 million from the Managed Futures operations. Strong performance by Managed Futures is reflected in both performance fees noted above and in investment gains on the seed capital committed to a fund which we are subadvisors.

John Robertson, President and CEO, said, "AUM increased to approximately $2.4 billion at December 31, 2015, higher by approximately $600 million from September 30, 2015 due to the closing in October of the fifth Private Debt Fund, raising total commitments of $667 million. Between outstanding commitments to Real Estate and the new Private Debt Fund, we have approximately $800 million in commitments to deploy. We are paid based on invested, or in the market assets, not capital committed.

"As those investments are made, we will see an increase in fee revenue and a steadily growing stream of recurring management fees. This should result in increasing profitability as there will be little increase in overhead required to deploy and manage the additional revenue generating assets.

"In addition we expect to close our first Infrastructure Debt Fund in the second quarter of the fiscal year, thus further increasing committed capital for deployment."

Cash declined by approximately $2.7 million, due to payment of annual bonuses, income taxes and the staffing related costs; however, working capital remains virtually unchanged at $17 million.

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 10, 2016.

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, private debt and managed futures as of February 4, 2016.

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