Integrated Asset Management Corp.

TSX : IAM


Integrated Asset Management Corp.

May 08, 2014 07:30 ET

Integrated Asset Management Corp. Announces Results for the Second Quarter of Fiscal 2014

TORONTO, ONTARIO--(Marketwired - May 8, 2014) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended March 31, 2014.

HIGHLIGHTS 3 Months Ended
March 31, 2014
(thousands except
per share amounts)
3 Months Ended
March 31, 2013
(thousands except
per share amounts)
6 Months Ended
March 31, 2014
(thousands except
per share amounts)
6 Months Ended
March 31, 2013
(thousands except
per share amounts)
Assets and Committed Capital Under Management ("AUM") $
1,951,000
$
1,886,000
$
1,951,000
$
1,886,000
Revenues before the undernoted $ 2,871 $ 2,451 $ 4,944 $ 4,839
Performance fees $ - $ 4 $ - $ 6
Investment gain $ 44 $ 259 $ 248 $ 415
Total revenues $ 2,915 $ 2,714 $ 5,192 $ 5,260
Net performance fees(1) $ - $ 4 $ - $ 6
EBITDA(1) $ 240 $ 161 $ (77) $ 184
Net income (loss) from continuing operations $
45
$
208
$
(227)
$
443
Gain on sale of discontinued operations $ - $ - $ 6,684 $ -
Loss from discontinued operations $ - $ (467) $ (172) $ (560)
Net income (loss) attributed to common shareholders of the Corporation $ 49 $ (261) $ 6,297 $ (121)
Earnings per share $ 0.00 $ (0.01) $ 0.23 $ 0.00
(1) Net Performance Fees and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") are non-IFRS earnings measures used by IAM.

The principal changes in AUM between March 31, 2014 and March 31, 2013 are due to the sale of BluMont Capital, which reduced AUM by approximately $276 million, the closing of a private debt fund in October 2013 which raised $387 million in commitments and the first closing of a real estate fund during the current quarter which raised $117 million.

The sale of BluMont Capital was completed in December 2013 and the gain on its sale and the historical results of its operations are shown under discontinued operations in the Corporation's financial statements.

Management fees and other income were $2.9 million in the latest quarter, up $0.4 million from $2.5 million in the comparable quarter of fiscal 2013. The increase is due to higher commitment fees on assets deployed by both the real estate and private debt funds.

EBITDA for the three months ended March 31, 2014 was $0.2 million, unchanged from the prior year's comparable quarter.

Subsequent to the March 31, 2014 quarter end, the Corporation monetized a real estate fund and will distribute the proceeds to the investors. As a result, IAM has realized performance fee revenue of approximately $3.5 million before associated costs and taxes, which will be recognized in the financial statements of the quarter ending June 30, 2014.

The Corporation's Normal Course Issuer Bid ("NCIB"), pursuant to which IAM may purchase its common shares for cancellation, expires on May 20, 2014. The Corporation intends to seek the approval of the Toronto Stock Exchange to renew the NCIB for another 12 month period.

John Robertson, President and Chief Executive Officer, said "with the completion of the sale of BluMont, IAM has become focused exclusively on being an institutional manager. Institutional AUM grew during the quarter and with active marketing of our first long duration infrastructure debt fund and our first open- ended real estate fund, we expect further growth in AUM in the next two quarters. With a clarity of focus and purpose, supported by substantial cash, we are actively seeking to add complementary businesses to our highly successful private debt and real estate operations".

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, 2014.

IAM is one of Canada's leading alternative asset management companies with approximately $2.0 billion in assets and committed capital under management in real estate, private debt, managed futures and private equity.

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