Integrated Asset Management Corp.
TSX : IAM

Integrated Asset Management Corp.

February 03, 2017 07:30 ET

Integrated Asset Management Corp. Announces Results for the First Quarter of Fiscal 2017

TORONTO, ONTARIO--(Marketwired - Feb. 3, 2017) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended December 31, 2016.



HIGHLIGHTS
3 Months Ended December 31, 2016 (thousands except per share amounts) 3 Months Ended December 31, 2015 (thousands except per share amounts)
Invested Capital $1,629,000 $1,516,000
Committed Capital to be Invested $896,000 $802,000
Total Assets Under Management ("AUM") $2,525,000 $2,318,000
Revenues before the undernoted $2,766 $2,496
Investment gain (loss) $(476 ) $63
Total revenues $2,290 $2,559
EBITDA(1) $81 $(628 )
Net loss from continuing operations $(22 ) $(591 )
Net income (loss) from discontinued operations held for sale $(8 ) $355
Net gain from sale of discontinued operations $- $401
Net income (loss) attributed to common shareholders of the Corporation $(26 ) $165
Earnings per share
Continuing operations $(0.00 ) $(0.02 )
Discontinued operations $(0.00 ) $0.03
Total $(0.00 ) $0.01
(1) Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation ("EBITDA") are non-IFRS earnings measures used by IAM.

The Corporation was essentially break-even for the quarter ended December 31, 2016 with continuing operations at $0.0 million ($0.00) per share versus a net loss from continuing operations in the quarter ended December 31, 2015 of $0.6 million ($0.02) per share. Management fees and interest income were higher, at $2.8 million versus $2.5 million in same quarter in 2015. Revenues were down, however, due to an unrealized loss of $476,000 on proprietary investments versus a gain on investments of $62,000 in the prior year. Subsequent to the quarter ended December 31, 2016, this investment was sold.

EBITDA improved to $0.1 million from negative $0.6 million in the same quarter of the previous fiscal year. Cash flow from operations was $0.2 million this year compared to negative $0.9 million in the previous year. The Corporation reported consolidated expenses for the quarter of $2.4 million, down $0.8 million from $3.2 million in the first quarter of fiscal 2016. Expenses were lower relative to the comparative quarter in the previous year due to costs incurred to effect staff reductions in that comparative quarter. In addition this quarter's expenses reflect a reduction of the run rate in operating expenses going forward.

AUM is stable at $2.5 billion. Of that, approximately $900 million is committed but not yet invested capital from real estate, private debt and infrastructure debt operations. In addition, the real estate group has commenced marketing for new additional capital for our open-end real estate fund.

John Robertson, President and CEO, said, "As the committed capital is invested, 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."

At the heart of our strategy has been moving the company to focus exclusively on the institutional market. With the close of the previously announced sale of the Managed Futures division, subject to regulatory approval, we will be a pure-play institutional manager. The proceeds of the sale of the Managed Futures division, combined with the return of seed capital in a managed futures fund, will add approximately $3.3 million in cash."

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, 2017.

IAM is one of Canada's leading alternative asset management companies with approximately $2.5 billion in assets and committed capital under management in real estate, private debt and managed futures as of February 3, 2017.

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