TORONTO, ONTARIO–(Marketwired – Aug. 4, 2017) – Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced unaudited financial results for the quarter ended June 30, 2017.
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HIGHLIGHTS |
3 Months Ended June 30, 2017 (thousands except per share amounts) | 3 Months Ended June 30, 2016 (thousands except per share amounts) | 9 Months Ended June 30, 2017 (thousands except per share amounts) | 9 Months Ended June 30, 2016 (thousands except per share amounts) | ||||||||
| Invested Capital | $ | 1,820,000 | $ | 1,559,000 | $ | 1,820,000 | $ | 1,559,000 | ||||
| Committed Capital to be Invested | $ | 685,000 | $ | 728,000 | $ | 685,000 | $ | 728,000 | ||||
| Total Assets Under Management (“AUM”) | $ | 2,505,000 | $ | 2,287,000 | $ | 2,505,000 | $ | 2,287,000 | ||||
| Revenues before the undernoted | $ | 4,128 | $ | 2,952 | $ | 10,953 | $ | 8,053 | ||||
| Investment loss | $ | – | $ | (72 | ) | $ | (538 | ) | $ | (94 | ) | |
| Total revenues | $ | 4,128 | $ | 2,880 | $ | 10,415 | $ | 7,959 | ||||
| EBITDA(1) | $ | 809 | $ | 308 | $ | 1,781 | $ | (491 | ) | |||
| Net income (loss) from continuing operations | $ | 561 | $ | 244 | $ | 1,038 | $ | (404 | ) | |||
| Gain from sale of discontinued operations, net of income taxes | $ | – | $ | – | $ | 699 | $ | 401 | ||||
| Net income (loss) from discontinued operations, net of income taxes | $ | – | $ | (38 | ) | $ | (69 | ) | $ | 226 | ||
| Net income (loss) attributed to common shareholders of the Corporation | $ | 555 | $ | 209 | $ | 1,675 | $ | 206 | ||||
| Earnings per share | ||||||||||||
| Continuing operations | $ | 0.02 | $ | 0.01 | $ | 0.04 | $ | (0.01 | ) | |||
| Discontinued operations | $ | – | $ | (0.00 | ) | $ | 0.02 | $ | 0.02 | |||
| Total | $ | 0.02 | $ | 0.01 | $ | 0.06 | $ | 0.01 | ||||
| (1) | Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation (“EBITDA”) are non-IFRS earnings measures used by IAM. |
AUM was approximately $2.5 billion at June 30, 2017, versus $2.3 billion for the quarter ended June 30, 2016.
Net earnings for the quarter ended June 30, 2017 from continuing operations were $0.6 million or $0.02 per share versus net earnings from continuing operations of $0.2 million or $0.01 per share in the quarter ended June 30, 2016. Management fees and other income were higher at $4.1 million versus $2.9 million in the same quarter in 2016. The Corporation reported consolidated expenses for the quarter of $3.4 million, up $0.8 million from $2.6 million in the third quarter of fiscal 2016.
Earnings before interest, taxes, depreciation and amortization, and stock based-compensation (“EBITDA”) improved to $0.8 million from $0.3 million in the same quarter of the previous fiscal year.
Cash flow from operations for the nine months ended June 30, 2017 was $1.6 million compared to negative $0.7 million in the same nine months of the previous fiscal year.
Assets and committed capital under management (“AUM”) remained unchanged at $2.5 billion from the previous quarter ended March 31, 2017. Of that, approximately $685 million is committed but not yet invested capital from real estate, private debt and infrastructure debt operations.
John Robertson, President and CEO, said “This quarter represents our first quarter as a strictly institutional manager focusing on private debt and real estate products. The results from this strategy are starting to be realized with revenues for the nine months up 31% over the same period in fiscal 2016. Expenses are up 4% over this same period. The increase relates to variable expenses, primarily employee bonuses, as a result of increased profits, and staff adjustment costs. Net income from continuing operations has increased by $1.4 million compared to the same nine month period in 2016.
“We earn our management fees on invested capital, rather than committed capital. The debt and real estate teams invested $69.8 million during the quarter earning $1.0 million in acquisition and commitment fees, thus raising recurring, long-term management fee revenue. In the comparable quarter of fiscal 2016, IAM earned $0.5 million in acquisition and commitment fees. We are pleased with these results and gratified by the success of our strategy. We believe IAM is well-positioned to continue to build on the strength reflected in these results.
“During the third quarter we made good progress in deploying committed but uninvested capital. The Company will generate growth in recurring, long-term management fees for the balance of the year as additional investments are made. Our assets under management remained steady at $2.5 billion, while our invested assets increased to $1.8 billion. Committed capital of $685 million remains to be invested, which will lead to revenue growth as these commitments are deployed.”
The Board of Directors of the Corporation has approved payment of a regular annual dividend on its outstanding shares of $0.06 per common share which will be paid on September 7, 2017 to shareholders of record on August 17, 2017. Going forward the Board of Directors of the Corporation has approved a change in dividend payment practice from annual to quarterly. The intention of the Corporation going forward is to distribute a $0.02 quarterly dividend, to reflect the higher level of recurring management fees. The declaration and payment of future dividends is subject to approval by the Corporation’s Board of Directors. There can be no assurance that the Corporation’s Board of Directors will declare future dividends.
John Robertson, President and CEO, said “We are pleased that our Company’s improved prospects for profitability have allowed us to increase our expected dividend by 33% to $0.08 annually, paid quarterly.”
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 August 9, 2017.
IAM is one of Canada’s leading alternative asset management companies with approximately $2.5 billion in assets and committed capital under management in real estate and private debt as of August 3, 2017.
