Integrated Asset Management Corp.

Integrated Asset Management Corp.

December 03, 2007 08:00 ET

Integrated Asset Management Corp. Announces Results for Fiscal 2007 and Dividend Increase

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced audited financial results for the fiscal year ended September 30, 2007 and its Board of Directors' approval to increase IAM's regular dividend. Net income and comprehensive income was $1.9 million or $0.07 per share in the current year versus net income and comprehensive income of $1.2 million or $0.06 per share in the prior year. EBITDA was $6.7 million compared to the prior year's EBITDA of $6.2 million as a result of higher management fees, administration and redemption fees.

Review of the Year Ended September 30, 2007

2007 2006
(thousands except (thousands except
HIGHLIGHTS per share amounts) per share amounts)
Assets and Committed Capital
Under Management ("AUM") $ 2,979,400 $ 2,882,200
Total Revenues $ 32,671 $ 32,433
Total Performance Fees Included
in Total Revenues $ 9,369 $ 11,561
EBITDA (i) $ 6,730 $ 6,224
Income before income taxes and
non-controlling interest $ 3,668 $ 2,950
Net income and comprehensive
income $ 1,880 $ 1,226
Earnings Per Share $ 0.07 $ 0.06
(i) Earnings before interest, taxes, depreciation and amortization
("EBITDA") is a non-GAAP earnings measure used by the Corporation.

AUM at IAM remained relatively unchanged since September 30, 2006.

Total revenues increased to $32.7 million in fiscal 2007 from $32.4 million in fiscal 2006 despite lower performance fees realized during the year. Management fees, administration and redemption fees increased $1.5 million or 8% (2006 - 8%) from $20.0 million in fiscal 2006 to $21.5 million in fiscal 2007.

Income before income taxes and non-controlling interest for fiscal 2007 increased to $3.7 million from $3.0 million in fiscal 2006.

IAM earns performance fees when investment returns outperform a designated benchmark. These benchmarks are contract specific, variable and only apply to certain investment products.

Recognizing the strong financial position of the Corporation, and given that the cash flow was $ 0.19 per share in fiscal 2007, the Board of Directors declared an increase in the dividend. The amount of the regular cash dividend has been increased to $0.08 per common share from $0.07 per common share, to be payable on a semi-annual basis ($0.04 per share). The Board of Directors has approved payment of the regular dividend on its outstanding common shares of $0.04 per share which will be payable on January 16, 2008 to shareholders of record on January 10, 2008.

Victor Kolsohuk, Chairman, President and CEO, said " We are pleased with our progress and with the outlook for the alternative asset segment of the investment management industry. Revenues before performance fees have increased every year for the past 5 years. While assets and committed capital under management increased only marginally, invested assets, which generate recurring management fees, increased significantly. All 3 major divisions are now profitable on an ongoing management fee basis before any performance fees are realized.

The Corporation is now well-positioned to take advantage of the operating leverage inherent in the asset management business. Our confidence in the future prospects as well as our strong financial position, is reflected in the dividend increase, the second increase in the last two years."

For detailed financial statements for the year, including Management's Discussion and Analysis and the Corporation's Annual Information Form, please refer to IAM's website or SEDAR at after December 10, 2007.

IAM is Canada's leading alternative asset management company with approximately $3 billion in assets and committed capital under management in real estate, private corporate debt, private equity, managed futures, and retail alternative investments.

This press release may contain forward-looking statements with respect to IAM and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in any such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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