Integrated Asset Management Corp.

TSX : IAM


Integrated Asset Management Corp.

December 06, 2013 07:30 ET

Integrated Asset Management Corp. Announces Results for Fiscal 2013

TORONTO, ONTARIO--(Marketwired - Dec. 6, 2013) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced audited financial results for the fiscal year ended September 30, 2013. Net loss was $0.5 million or $0.02 per share in the current year versus net loss of $1.7 million or $0.06 per share in the prior year. EBITDA decreased from $1.5 million in fiscal 2012 to $1.3 million in fiscal 2013. Excluding the impact of net performance fees of $1.3 million in fiscal 2012, EBITDA increased from $0.2 million to $1.3 million in fiscal 2013. This increase is a combination of improved profitability in IAM Private Debt and the absence in fiscal 2013 of losses from the global bonds operations which were sold in fiscal 2012.

Review of the Quarter Review of the Year


HIGHLIGHTS
3 Months Ended September 30, 2013 (thousands except per share amounts) 3 Months Ended September 30, 2012 (thousands except per share amounts) Year Ended September 30, 2013 (thousands except per share amounts) Year Ended September 30, 2012 (thousands except per share amounts) Year Ended September 30, 2011 (thousands except per share amounts)
Assets and Committed Capital Under Management ("AUM") $
1,935,200
$
1,942,400
$
1,935,200
$
1,942,400
$
2,305,900
Revenues before the undernoted $ 2,954 $ 2,234 $ 11,777 $ 10,349 $ 16,361
Performance fees $ - $ - $ 8 $ 1,770 $ 8,936
Investment gain (loss) (160 ) $ 50 $ 335 $ 396 $ 3,060
Total revenues 2,794 $ 2,284 $ 12,120 $ 12,515 $ 28,357
Net performance fees(1) $ - $ - $ 8 $ 1,331 $ 5,755
EBITDA(1) 277 $ (155 ) $ 1,271 $ 1,497 $ 5,485
Net income (loss) from continuing operations
(333
) $
(5
) $
472
$
107
$
7,105
Net loss from discontinued operations
(398
) (258 ) $ (1,083 ) $ (1,657 )
Net loss attributed to common shareholders of the Corporation

(644
) $ (455 ) $ (524 ) $ (1,742 ) $ 4,355
Earnings (loss) per share $ (0.02 ) $ (0.02 ) $ (0.02 ) $ (0.06 ) $ 0.15
(1) Net performance fees and EBITDA are non-GAAP earnings measures used by the Corporation. EBITDA is calculated as earnings before the deduction of non-controlling interest, interest expense, income taxes, depreciation and amortization, stock-based compensation and investment income (loss).

In September 2013, the Corporation announced that it had entered into an agreement to sell its 100% ownership interest in BluMont Capital Corporation ("BluMont Capital"). After receipt of the necessary approvals of applicable securities regulatory authorities, the Corporation announced the closing of the transaction on December 3, 2013. On closing, the Corporation received cash consideration of approximately $6.6 million and the Corporation is entitled to receive future consideration based on a specific percentage of any net performance fees realized in the funds managed by BluMont Capital as at December 31, 2013 and in 2014 and 2015. Based on the performance of these funds as at November 30, 2013, this amount would be approximately $3.3 million, however, this amount could change significantly by December 31, 2013 given the volatile nature of equity markets.

The financial statements of the Corporation for fiscal years 2013 and 2012 include the operating results of BluMont Capital but they are separated and classified as "discontinued operations"; the remaining operations of IAM are classified as "continuing operations". In the table above, revenues and EBITDA exclude the revenues and EBITDA of BluMont Capital. The sale of BluMont Capital will be recognized in the first quarter of fiscal 2014 in the financial statements of the Corporation and the pre-tax gain is approximately $4.0 million (or 15 cents per share) based on the consideration received on closing and will be correspondingly higher in the event that the Corporation receives any future consideration related to performance fees earned by BluMont Capital in 2013, 2014 and 2015.

In aggregate, AUM of $1.9 billion at September 30, 2013 were unchanged from the prior year end. The AUM of BluMont Capital of $276 million at September 30, 2013 were excluded because the sale had been entered into prior to the fiscal year end. The other principal change in fiscal 2013 was the closing of a private corporate debt fund in July 2013 which raised $387 million of commitments.

Victor Koloshuk, Chairman and Chief Executive Officer of IAM said "With the sale of BluMont Capital we have made considerable progress during 2013 to streamline and redirect IAM into the institutional alternative asset management business.

"Our already strong financial position (with no debt and cash and investments of $9.9 million) will be further strengthened by the proceeds from the sale of BluMont Capital as well as the performance fees anticipated during 2014.

"In fact during 2013 our unrealized performance fees increased by $7.3 million to $13.7 million (as of September 30, 2013) and almost half of these fees are expected to be realized as part of the sale of BluMont Capital and during fiscal 2014 from the monetization of a real estate fund.

"Thus we will be in a good position to look at strategic acquisitions in our industry.

"Our major lines of business (real estate and private debt) are profitable without performance fees and are expected to grow significantly during 2014. While we have previously announced the closing of our fourth senior secured debt fund at $387 million on October 7, 2013, we are already in the market with our fifth private debt fund which will have a term of up to 30 years and which is expected to close in early 2014. In addition, IAM Real Estate is raising funds for its 13th pool and again we hope to close in early 2014. This will represent our largest ever growth of AUM in our core products.

"I am also pleased to announce that effective January 1, 2014 John Robertson, our President will assume the role of CEO. I will remain as Chairman and will direct my efforts toward major strategic initiatives."

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 www.sedar.com after December 12, 2013.

IAM is one of Canada's leading alternative asset management companies with approximately $1.9 billion in assets and committed capital under management in real estate, private debt, managed futures and private equity as of December 5, 2013.

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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