Integrated Asset Management Corp.
TSX : IAM

Integrated Asset Management Corp.

May 12, 2009 10:13 ET

Integrated Asset Management Corp. Announces Results for the Second Quarter of Fiscal 2009 and Suspends Dividend

TORONTO, ONTARIO--(Marketwire - May 12, 2009) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended March 31, 2009 and its decision to suspend the dividend.

IAM considers that the current economic uncertainties may present attractive acquisition and merger opportunities for IAM in both the retail and institutional sectors of the asset management industry in Canada. These opportunities may require cash investment by IAM. In addition, the earnings outlook for IAM is constrained given the decline in AUM in Retail Alternative Investments and the associated operating losses in those operations. As a result, the Board of Directors of IAM has decided to suspend the semi-annual dividend which would otherwise be payable in June 2009.



Review of the 3-Month Period Ended
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March 31, 2009 March 31, 2008
(thousands except (thousands except
HIGHLIGHTS per share amounts) per share amounts)
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Assets and Committed Capital
Under Management ("AUM")(1) $2,096,000 $2,617,000
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Revenues before Performance
Fees(1) $3,743 $5,264
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Performance Fees $nil $nil
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Total Revenues(1) $3,743 $5,264
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Net Performance Fees(2) $nil $nil
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EBITDA(1)(2) $(184) $1,024
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Income (loss) from continuing
operations before income taxes
and non-controlling interest(1) $(8,607) $332
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Net income (loss) and
comprehensive income $(6,398) $66
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Earnings (loss) per share $(0.23) $0.00
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(1) Excludes discontinued operations (Darton) which were sold effective
December 1, 2008.

(2) Earnings before interest, taxes, depreciation and amortization
("EBITDA") and Net Performance Fees are non-GAAP earnings measure used
by IAM.


AUM decreased by approximately $521 million from the previous year and decreased by approximately $234 million from September 30, 2008. The decrease is primarily the result of market depreciation and net redemptions in Retail Alternative Investments which has been negatively affected by the unprecedented events in the global financial markets.

Total revenues in the three months ended March 31, 2009 were $3.7 million compared to $5.3 million in the quarter ended March 31, 2008 reflecting a decrease in management fees in Retail Alternative Investments and fewer transaction fees (largely timing related) in Private Corporate Debt and Real Estate Asset Management. There were no performance fees realized in either the current or prior year's quarter.

EBITDA from continuing operations for the three months ended March 31, 2009 was negative $0.2 million, a reduction of $1.2 million from $1.0 million EBITDA in the prior year's comparable quarter. At Retail Alternative Investments, management fees were lower due to a lower level of AUM whereas fees were lower in Private Corporate Debt and Real Estate Asset Management due to fewer completed transactions with associated transaction fees.

IAM reported a loss from continuing operations before income taxes and non-controlling interest of $8.6 million in the current quarter versus income of $0.3 million for the three months ended March 31, 2008. As a result of the erosion in AUM and in profits at BluMont Capital, the net book value of the intangible assets of Retail Alternative Investments on IAM's Consolidated Balance Sheet in the amount of $7.7 million pre-tax (comprising goodwill of $0.6 million and fund management contracts of $7.1 million) was written off completely. The after tax charge of $5.8 million reflects a loss of $0.20 per share in the current quarter.

Net loss, which includes the non-cash accounting impairment charge for goodwill and fund management contracts, was $6.4 million or $0.23 per share in the current quarter versus net income of $0.1 million or $0.00 per share in the prior year's comparable quarter.

IAM ended the quarter with a strong working capital position. Cash and marketable securities were $7.3 million and IAM has no debt.

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

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 May 12, 2009.

IAM is Canada's leading alternative asset management company with approximately $2.1 billion in assets and committed capital under management in real estate, private corporate debt, private equity, managed futures and retail alternative investments.

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