Mr. Tom Felkai reports

INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR FISCAL 2018 AND DECLARES DIVIDEND

Integrated Asset Management Corp. (IAM) has provided its financial results for the fiscal year ended Sept. 30, 2018.

John Robertson, chief executive officer, said: "This was our first full year of operations pursuing a changed strategy of focusing on our two core businesses, private debt and real estate, and becoming exclusively an institutional manager. Results were very strong on every front."

Revenues for the 12 months of fiscal 2018 rose 31.3 per cent over the same period in 2017; excluding performance fees in 2018, revenues rose 17.6 per cent. Expenses were up 6.4 per cent in fiscal 2018 over 2017, primarily as a result of bonuses and costs related to the realization of the real estate performance fee. Selling, general and administration expenses, which represent the vast majority of expenses, increased just 2.5 per cent.

Adjusted earnings before interest, taxes, depreciation and amortization, and stock-based compensation increased 2.8 times, to $5.1-million from $1.8-million in fiscal 2017. Adjusted EBITDA net of performance fees after associated costs and non-controlling interest were $3.5-million. Net income from continuing operations tripled to $3.6-million in fiscal 2018 versus $1.2-million in the same period in 2017.

Mr. Robertson noted, "These solid results, with which we are very pleased, illustrate the positive leverage of increased deployment of committed capital, generating significant increase in revenue with nominal increase in operating expenses."

In aggregate, assets and committed capital under management (AUM) were approximately $2.3-billion as at Sept. 30, 2018, down $167-million from approximately $2.5-billion at the prior year-end. AUM in IAM Private Debt decreased approximately $188 million in fiscal 2018 as a result of distributions to investors of routine principal repayments received on loans in pre-existing private debt funds and early prepayments on loans. AUM in IAM Real Estate increased approximately $21-million in fiscal 2018. The net increase resulted from raising approximately $32-million in the open IAM Real Property Fund over the course of fiscal 2018, a joint venture of $40-million with an institutional investor, and increase in the appraised values of existing assets. The increase was partially offset from the sale, upon maturity, of the real estate group's GPM Fund 10 (AUM at Sept. 30, 2017, of approximately $86-million).

Management fees are earned on invested capital, not committed capital. The private debt and real estate teams invested approximately $360-million during the year. At year-end, there was combined uninvested committed capital of $373-million for real estate, private debt and infrastructure debt. Of this uninvested capital, all but $200-million has now been committed and is expected to close in Q1 and Q2 of fiscal 2019. As these commitments are invested, they will earn commitment and acquisition fees and increase recurring long-term management fee revenue.

The IAM Private Debt team launched its sixth private corporate debt fund in fiscal 2018 and a new high yield fund. Marketing of the sixth private debt fund is well advanced, with an expected first close in December of this year. Interest has been very strong from current and new investors, and the company expects that this could be its largest fund raise ever.

Over the course of fiscal 2018, the dividend payment policy was changed from annual to quarterly, and the annual rate increased from six cents per share at the beginning of the year to 12 cents per share at the end of the fiscal year.

A dividend for the quarter of three cents per common share was approved by the board of directors on Nov. 29, 2018, for shareholders of record on Dec. 11, 2018. The dividend will be paid Dec. 21, 2018.

John Robertson, chief executive officer, said: "These excellent results have validated our strategy and our execution. IAM is well positioned to continue this growth."

                                      HIGHLIGHTS 
                       (thousands expect per share amounts)
 
                                                 Three months ended               Year ended
                                                           Sept. 30,                Sept. 30,
                                                   2018        2017        2018         2017

Invested capital                             $1,934,100  $1,854,300  $1,934,100   $1,854,300
Committed capital to be invested                372,900     619,200     372,900      619,200
Total assets under management (AUM)          $2,307,000  $2,473,500  $2,307,000   $2,473,500
Revenues before the undernoted                   $5,068      $3,263     $16,104      $14,216
Performance fees                                     $-          $-      $1,873           $-
Investment loss                                   $(46)       $(21)       $(48)       $(559)
Total revenues                                   $5,022      $3,242     $17,929      $13,657
Net performance fees                                 $-          $-      $1,395           $-
Adjusted EBITDA                                  $1,663         $66      $5,105       $1,819
Net income from continuing operations            $1,199        $136      $3,623       $1,174
Net gain from discontinued operations,
net of income taxes                                  $-          $-          $-         $630
Net income attributed to common
shareholders of the corporation                  $1,190        $133      $3,364       $1,808
Earnings per share
Continuing operations                             $0.04       $0.00       $0.12        $0.04
Discontinued operations                              $-          $-          $-        $0.02
Total                                             $0.04       $0.00       $0.12        $0.06
                                                          

For detailed financial statements for the year, including management's discussion and analysis and the corporation's annual information form, please refer to the company's website or SEDAR after Dec. 10, 2018.

The company 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, private debt and infrastructure debt as of Nov. 29, 2018.

We seek Safe Harbor.