Integrated Asset Management Corp.

Integrated Asset Management Corp.

December 08, 2010 08:30 ET

Integrated Asset Management Corp. Announces Results for Fiscal 2010

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2010) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced audited financial results for the fiscal year ended September 30, 2010. Net income and comprehensive income was $1.0 million or $0.04 per share in the current year versus net loss and comprehensive loss of $6.5 million or $0.23 per share in the prior year. EBITDA was $4.4 million compared to the prior year's EBITDA of $0.1 million as a result of higher net performance fees of $3.0 million and also due to improved profitability in Private Corporate Debt and Real Estate Asset Management and lower operating losses in Retail Alternative Investments. The results for fiscal 2009 included an extraordinary write-off of goodwill and other intangibles of $7.7 million pre-tax ($5.8 million after tax or $0.20 per share) related to Retail Alternative Investments.

      Review of the Quarter
Ended September 30,
      Review of the Year
Ended September 30,
HIGHLIGHTS     2010 (thousands except per share amounts)     2009 (thousands except per share amounts)       2010 (thousands except per share amounts)     2009 (thousands except per share amounts)  
Assets and Committed Capital Under Management ("AUM")   $ 2,016,000   $ 2,013,200     $ 2,016,000   $ 2,013,200  
Revenues before                            
performance fees (1)   $ 5,599   $ 3,825     $ 16,791   $ 15,632  
Performance fees     13     139       4,769     314  
Total revenues (1)    $ 5,612   $ 3,964     $ 21,560   $ 15,946  
Net performance fees (2)    $ 13   $ 114     $ 3,264   $ 285  
EBITDA (1)(2)    $ 812   $ (147 )   $ 4,359   $ 105  
Income (loss) from continuing operations before income taxes and non-controlling interest (1)    $ 498   $ (352 )   $ 2,916   $ (9,851 )
Net income (loss) and comprehensive income    $ 220   $ (455 )   $ 1,035   $ (6,544 )
Earnings (loss) per share    $ 0.01   $ (0.02 )   $ 0.04   $ (0.23 )
(1) Results for fiscal 2009 exclude discontinued operations (Darton) which were sold effective December 1, 2008.  
(2) Net performance fees and EBITDA (earnings before interest, taxes, depreciation and amortization) are non-GAAP earnings measures used by the Corporation.  

AUM at September 30, 2010 were relatively unchanged from fiscal 2009. Private Corporate Debt and Real Estate Asset Management were active in deploying outstanding commitments in their funds during fiscal 2010 and did not close any new funds in the fiscal year.

Subsequent to the fiscal year end, in October 2010, Private Corporate Debt announced the closing of a new fund with total commitments of $275 million. In November 2010, the Corporation announced the launch of a new real estate fund targeted to raise between $150 million and $200 million with the first close expected in March 2011.

Performance fees of $4.8 million were realized in fiscal 2010; the majority of which were in Real Estate Asset Management. In fiscal 2009, performance fees of $0.3 million were realized, the majority of which were in the Managed Futures operations. The Corporation expects to realize a scheduled performance fee in fiscal 2011 from Real Estate Asset Management and performance fees in Retail Alternative Assets which have the potential for a significant contribution to earnings in fiscal 2011.

In September 2010, the Corporation announced the reinstatement of a regular cash dividend and a dividend of $0.04 per common share was paid in October 2010.

Victor Koloshuk, Chairman and Chief Executive Officer of IAM said "While Retail Alternative Investments still face challenges in building AUM back to the levels of 2007 and 2008, we are making progress in both retail and institutional businesses. This year, Real Estate Asset Management and Private Corporate Debt are well positioned to grow further. Also this year, we acquired the Northern Rivers group of funds to add to our retail product offering and, in September 2010, we announced the launch of River Plate House Capital Management Inc., our global government bond long/short investment strategies asset management company".

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 13, 2010.

IAM is one of Canada's leading alternative asset management companies with approximately $2.3 billion in assets and committed capital under management in real estate, private corporate debt, private equity, global bonds, managed futures, and retail alternative investments as of December 7, 2010.

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.

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