Integrated Asset Management Corp. Announces Results for the Third Quarter of Fiscal 2018 and Declares Increased Dividend
TORONTO, Aug. 03, 2018 (GLOBE NEWSWIRE) -- Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced unaudited financial results for the quarter ended June 30, 2018.
| HIGHLIGHTS | 3 Months Ended June 30, 2018 (thousands except per share amounts) | 3 Months Ended June 30, 2017 (thousands except per share amounts) | 9 Months Ended June 30, 2018 (thousands except per share amounts) | 9 Months Ended June 30, 2017 (thousands except per share amounts) |
| Invested Capital | $1,788,000 | $1,820,000 | $1,788,000 | $1,820,000 |
| Committed Capital to be Invested | $513,000 | $685,000 | $513,000 | $685,000 |
| Total Assets Under Management (“AUM”) | $2,301,000 | $2,505,000 | $2,301,000 | $2,505,000 |
| Revenues before the undernoted | $3,490 | $4,128 | $11,035 | $10,953 |
| Performance fees | $674 | $ - | $1,873 | $ - |
| Investment loss | $(3) | $ - | $(2) | $(538) |
| Total revenues | $4,161 | $4,128 | $12,906 | $10,415 |
| Net performance fees(1) | $496 | $ - | $1,395 | $ - |
| Adjusted EBITDA(1) | $1,286 | $799 | $3,441 | $1,753 |
| Net income from continuing operations | $913 | $561 | $2,423 | $1,038 |
| Gain on sale of discontinued operations, net of income taxes | $ - | $ - | $ - | $699 |
| Net loss from discontinued operations, net of income taxes | $ - | $ - | $ - | $(69) |
| Net income attributed to common shareholders of the Corporation | $817 | $555 | $2,173 | $1,675 |
| Earnings per share | ||||
| Continuing operations | $0.03 | $0.02 | $0.08 | $0.04 |
| Discontinued operations | $ - | $ - | $ - | $0.02 |
| Total | $0.03 | $0.02 | $0.08 | $0.06 |
| (1) Net Performance Fees and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation (“Adjusted EBITDA”) are non-IFRS earnings measures used by IAM. | ||||
John Robertson, President and CEO, said “Despite lower investing activity in the quarter, revenue, EBITDA, cash flow from operations and net income were all above the comparable period of 2017. We expect a significant increase in investing in the fourth quarter over that of the current quarter.”
The Corporation reported net income from continuing operations for the quarter ended June 30, 2018 of $0.9 million ($0.03 per share) versus net income from continuing operations in the quarter ended June 30, 2017 of $0.6 million ($0.02 per share). Management fees and other income were lower, at $3.5 million versus $4.1 million in same quarter in 2017. The management fees and other income declined in the quarter as a result of the decrease in AUM and lower investing activity in the quarter.
In the current quarter, the Real Estate Group’s GPM Fund 10 realized an additional performance fee of approximately $0.7 million before associated costs and taxes. After deducting employee bonuses and non-controlling interest, the Corporation realized $0.4 million before income taxes.
Adjusted EBITDA improved to $1.3 million in the quarter ended June 30, 2018 from $0.8 million in the same quarter of the previous fiscal year. Cash flow from operations was $1.1 million for the quarter compared to $0.7 million in the previous year’s quarter. The Corporation reported consolidated expenses for the quarter of $2.9 million, down $0.5 million from $3.4 million in the third quarter of fiscal 2017. Expenses were lower relative to the comparative quarter in the previous year primarily due to costs associated with staffing changes recognized in that comparative quarter.
AUM for the nine months ended June 30, 2018 declined by $173 million to $2.3 billion compared to $2.5 billion at September 30, 2017. This was a result of the sale upon maturity of the Real Estate Group’s GPM Fund 10 and the normal amortization of loans in the Private Debt Group’s funds. Approximately $513 million of the AUM is committed but not yet invested capital in real estate, private debt and infrastructure debt funds.
John Robertson, President and CEO, said “We are pleased we have achieved net income of $0.03 per share in the quarter. This was a result of a strong quarter for the Real Estate Group in both acquisition and performance fees. The Private Debt Group had a slower than anticipated quarter as a result of delays in closing of transactions in the quarter. These transactions are expected to close early in the fourth quarter.
We are particularly pleased that cash from operations has increased significantly to $2.9 million for the nine months ended June 30, 2018 up from $1.6 million in the comparable period in fiscal 2017.
The outlook for the rest of the year remains very positive. We are making progress toward our previously stated target of raising $1 billion of committed capital in the next 9 months.”
The Board of Directors of the Corporation has approved payment of a quarterly cash dividend in the amount of $0.03 per outstanding share, totaling approximately $0.8 million based on the number of shares outstanding on August 2, 2018. This dividend will be paid on September 12, 2018 to shareholders of record on August 16, 2018.
John Robertson, President and CEO, said “The quarterly dividend increase from $0.02 per outstanding share to $0.03 per outstanding share is sustainable based on the Corporation’s strong results year to date, the anticipated growth in revenue and our healthy cash position.”
For detailed financial statements for the quarter, including Management’s Discussion and Analysis, please refer to IAM’s website at or SEDAR at after August 8, 2018.
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 and private debt as of August 2, 2018.
For further information, please contact
Tom Felkai, CFO
416 933 8263
