TORONTO, ONTARIO–(Marketwired – Dec. 2, 2016) – Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced its financial results for the fiscal year ended September 30, 2016. Net income was $0.1 million or $0.00 per share in the current year versus net income of $1.1 million or $0.04 per share in the prior year.
| Review of the Quarter | Review of the Year | |||
|
HIGHLIGHTS |
3 Months Ended September 30, 2016 (thousands except per share amounts) |
3 Months Ended September 30, 2015 (thousands except per share amounts) |
Year Ended September 30, 2016 (thousands except per share amounts) |
Year Ended September 30, 2015 (thousands except per share amounts) |
| Invested Capital | $1,663,700 | $1,580,400 | $1,663,700 | $1,580,400 |
| Committed Capital to be Invested | 964,600 | 120,900 | 964,600 | 120,900 |
| Total Assets and Committed Capital Under Management (“AUM”) | $2,628,300 | $1,701,300 | $2,628,300 | $1,701,300 |
| Revenues before the undernoted | $3,984 | $3,148 | $12,438 | $12,275 |
| Performance fees | $1 | $1 | $446 | $850 |
| Investment (loss) gain | $(438) | $415 | $(530) | $1,156 |
| Total revenues | $3,547 | $3,564 | $12,354 | $14,281 |
| Net performance fees(1) | $1 | $1 | $358 | $729 |
| Adjusted EBITDA, from continuing operations(1) | $424 | $(241) | $199 | $1,075 |
| Net income (loss) from continuing operations | $(201) | $(99) | $(262) | $1,001 |
| Net gain from discontinued operations | $ – | $190 | $401 | $190 |
| Net income attributed to common shareholders of the Corporation | $(197) | $93 | $119 | $1,132 |
| Earnings per share | ||||
| Continuing operations | $(0.01) | $(0.01) | $(0.01) | $0.03 |
| Discontinued operations | $ – | $0.01 | $0.01 | $0.01 |
| Total | $(0.01) | $0.00 | $0.00 | $0.04 |
| (1) Net Performance Fees and Earnings Before Interest, Taxes, Depreciation and Amortization, stock-based compensation and investment gains and losses (“Adjusted EBITDA”) are non-IFRS earnings measures used by IAM. |
In aggregate, AUM were approximately $2.6 billion as at September 30, 2016 up approximately $927 million from the prior year end. AUM in IAM Private Debt increased approximately $907 million in fiscal 2016. During the year IAM Private Debt Group closed two funds raising $667 million and $347 million respectively. This increase was partially offset by distributions to investors of routine principal repayments received on loans in pre-existing private debt funds.
Adjusted EBITDA was $1.1 million in fiscal 2015 and $0.2 million in fiscal 2016. Excluding the impact of net performance fees ($0.7 million and $0.4 million in fiscal 2015 and 2016 respectively), Adjusted EBITDA decreased from $0.4 million in fiscal 2015 to ($0.2 million) in fiscal 2016. A significant portion of this decrease resulted from one-off staffing expenses. Investment gains (losses) are excluded in the calculation of Adjusted EBITDA.
John Robertson, Chief Executive Officer said, “2016 was a transition year for the Corporation. The Private Debt Group raised over $1 Billion; $667 million in our fifth Corporate Debt Fund and $347 million in our first long-term Infrastructure Debt Fund. This is expected to significantly increase revenue and profitability from growing management fees over the next two years, and beyond, as the committed capital is invested.
The Real Estate Group had a very strong year as they invested over $100 million in their thirteenth fund. The team is now preparing to raise additional capital in 2017 for this fund as it becomes an open fund following completion of the initial investment period.
Over the course of the year we completed our re-organization, with a one-time cost of approximately $1.0 million. A substantial reduction in operating expenses will be seen in 2017 and the years following. Unfortunately, the strong performance in our Managed Futures fund over the previous two years reversed sharply, resulting in an unrealized loss of $0.5 million for the year.
The deployment of capital we have raised, combined with the overhead reduction made in 2016, is expected to lead to a very strong performance in 2017.”
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 8, 2016.
IAM is one of Canada’s leading alternative asset management companies with approximately $2.6 billion in assets and committed capital under management in real estate, private debt and managed futures as of December 1, 2016.
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.
CFO
416 933 8263
Integrated Asset Management Corp.
www.iamgroup.ca