TORONTO, Dec. 06, 2017 (GLOBE NEWSWIRE) — Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced its financial results for the fiscal year ended September 30, 2017. Net income was $1.8 million or $0.06 per share in the current year versus net income of $0.1 million or $0.00 per share in the prior year.
| Review of the Quarter | Review of the Year | |||||||||||
| HIGHLIGHTS | 3 Months Ended September 30, 2017 (thousands except per share amounts) |
3 Months Ended September 30, 2016 (thousands except per share amounts) |
Year Ended September 30, 2017 (thousands except per share amounts) |
Year Ended September 30, 2016 (thousands except per share amounts) |
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| Invested Capital | $ | 1,854,300 | $ | 1,592,100 | $ | 1,854,300 | $ | 1,592,100 | ||||
| Committed Capital to be Invested | 619,200 | 964,600 | 619,200 | 964,600 | ||||||||
| Total Assets and Committed Capital Under Management (“AUM”) | $ | 2,473,500 | $ | 2,556,700 | $ | 2,473,500 | $ | 2,556,700 | ||||
| Revenues before the undernoted | $ | 3,263 | $ | 3,851 | $ | 14,216 | $ | 11,904 | ||||
| Performance fees | $ | – | $ | – | $ | – | $ | – | ||||
| Investment loss | $ | (21 | ) | $ | (438 | ) | $ | (559 | ) | $ | (532 | ) |
| Total revenues | $ | 3,242 | $ | 3,413 | $ | 13,657 | $ | 11,372 | ||||
| Net performance fees(1) | $ | – | $ | – | $ | – | $ | – | ||||
| Adjusted EBITDA, from continuing operations(1) | $ | 75 | $ | 269 | $ | 1,856 | $ | (221 | ) | |||
| Net income (loss) from continuing operations | $ | 136 | $ | 40 | $ | 1,174 | $ | (366 | ) | |||
| Gain from sale of discontinued operations, net of income taxes | $ | – | $ | – | $ | 699 | $ | 401 | ||||
| Net income (loss) from discontinued operations, net of income taxes | $ | – | $ | (122 | ) | $ | (69 | ) | $ | 104 | ||
| Net income attributed to common shareholders of the Corporation | $ | 133 | $ | (87 | ) | $ | 1,808 | $ | 119 | |||
| Earnings per share | ||||||||||||
| Continuing operations | $ | 0.00 | $ | 0.01 | $ | 0.04 | $ | (0.02 | ) | |||
| Discontinued operations | $ | – | $ | (0.01 | ) | $ | 0.02 | $ | 0.02 | |||
| Total | $ | 0.00 | $ | (0.01 | ) | $ | 0.06 | $ | 0.00 | |||
| (1) Net Performance Fees and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, stock-based compensation (“Adjusted EBITDA”) are non-IFRS earnings measures used by IAM. | ||||||||||||
In aggregate, AUM was approximately $2.5 billion as at September 30, 2017 down approximately $83 million from the prior year end. AUM in IAM Private Debt decreased approximately $153 million in fiscal 2017. During the year IAM Private Debt deployed invested capital of approximately $355 million increasing future management fees, as fees are earned on assets deployed. The decrease in IAM Private Debt’s total AUM was the result of distributions to investors of routine principal repayments received on loans in pre-existing private debt funds and early prepayment on a loan. AUM in IAM Real Estate increased approximately $70 million in fiscal 2017; the net increase primarily represents the raising of approximately $41 million in the open fund during 2017.
Adjusted EBITDA increased $2.1 million from $(0.2 million) in fiscal 2016 to $1.9 million in fiscal 2017. A significant portion of this increase resulted from higher management, acquisition and commitment fees.
John Robertson, Chief Executive Officer, said “We are very pleased with the results for 2017 and they are in line with the expectations for the year. As we have said in the past, we receive management fees on invested capital not committed capital. Primarily as a result of significant deployment in the Private Debt Group, revenues rose by $2.3 million, a 20% increase; while expenses remained relatively flat. This resulted in an increase in Adjusted EBITDA for the year of $2.1 million over 2016 Adjusted EBITDA. With over $600 million in committed capital remaining to be deployed and relatively flat expenses anticipated, we expect similar progress to be achieved in fiscal 2018. In addition, the open ended real estate fund, IAM Real Property Fund began accepting quarterly subscriptions as of March 31, 2017 and to-date has raised $41 million with further subscriptions in the process of being finalized. The Debt Group is in the market raising a higher yield fund and is also preparing to launch their sixth corporate debt fund in fiscal 2018. These initiatives should maintain the committed but uninvested capital at a level in excess of $500 million.
With the improvement in earnings and the positive outlook for the future, the intention is to distribute a $0.02 quarterly dividend. This represents a 33% increase in the annual dividend. The first quarterly dividend will be paid December 20, 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, 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, private debt and infrastructure debt as of December 5, 2017.
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.
For further information, please contact
Tom Felkai, CFO
416 933 8263
Integrated Asset Management Corp.
70 University Avenue, Suite 1200, Toronto, Ontario M5J 2M4
www.iamgroup.ca