Mr. John Robertson reports

INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR THE FIRST QUARTER OF FISCAL 2019 AND DECLARES DIVIDEND

Integrated Asset Management Corp. has released its unaudited financial results for the first quarter ended Dec. 31, 2018.

John Robertson, president and chief executive officer, said: "We are very pleased with the financial progress we have made, which validates our institutionally focused business plan. Our results in the first quarter of 2019 versus the first quarter of 2018 clearly demonstrate improved results in both real estate and private debt."

The corporation reported net income for the quarter ended Dec. 31, 2018, of $800,000 (three cents per share) versus net income in the quarter ended Dec. 31, 2017, of $500,000 (two cents per share). Management fees and other income were higher, at $4.6-million versus $3.5-million in the same quarter in fiscal 2018. The increase in management fees and other income compared to fiscal 2018 is the result of deployment of commitments at higher rates and interest income from investments in funds managed by the corporation.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) improved to $1.3-million from $700,000 in the same quarter of the previous fiscal year. Cash flow from operations was $900,000 this year compared with $500,000 in the previous year. The corporation reported consolidated expenses for the quarter of $3.4-million, up $600,000 from $2.8-million in the first quarter of fiscal 2018. Expenses were higher relative to the comparative quarter in the previous year primarily due to an increase in the employee bonus accrual as a result of increased profits and higher consulting fees.

Assets and committed capital under management (AUM) for the quarter ended Dec. 31, 2018, declined marginally by $51-million to $2.3-billion compared with $2.3-billion at Sept. 30, 2018. Of the AUM at Dec. 31, 2018, approximately $256-million was committed but not yet invested capital from real estate, private debt and infrastructure debt operations.

Mr. Robertson said: "Comparing the first quarter of 2019 to the first quarter of 2018, revenue was 34 per cent higher, adjusted EBITDA increased 82 per cent and net income rose 79 per cent. These results dramatically illustrate the operating leverage of growing committed and invested capital with a modest increase in operating expenses.

"Our intention to distribute earnings because of the strong corporate financial position has led to significant increases in dividends over the last two years. In fiscal 2016 our dividend was six cents per share and for the first quarter this year our quarterly dividend is three cents per share (12 cents per share annually).

"On Jan. 15, 2019, the corporation announced the closing of IAM Private Debt Fund VI at $843-million. This was our largest fundraise yet, 25 per cent bigger than our previous largest fundraise, IAM Private Debt Fund V. We now have approximately $1-billion in committed but uninvested capital and total AUM of approximately $3.1-billion. We are paid on invested capital, not committed capital, so this bodes well for increasing revenue, earnings and cash flow over the next two years as this fund gets invested. Congratulations to the private debt group on this historic capital raise."

The board of directors of the corporation has approved payment of a dividend in the amount of three cents per outstanding share, totalling approximately $800,000 based on the number of shares outstanding at that date. This dividend will be paid on March 8, 2019, to shareholders of record on Feb. 21, 2019.

                                  HIGHLIGHTS 
                   (thousands, except per-share amounts)

                                                  Three months ended Dec. 31,   
                                                        2018             2017

Invested capital                                  $2,000,000       $1,818,000
Committed capital to be invested                    $256,000         $572,000
Total assets under management (AUM)               $2,256,000       $2,390,000
Revenues before the undernoted                        $4,348           $3,272
Investment gain, interest and other income              $301             $190
Total revenues                                        $4,649           $3,462
Adjusted EBITDA                                       $1,251             $685
Net income                                              $831             $460
Net income attributed to
common shareholders of the corporation                  $848             $474
Earnings per share                                     $0.03            $0.02

About Integrated Asset Management Corp.

The company is one of Canada's leading alternative asset management companies with approximately $3.1-billion in assets and committed capital under management in real estate and private debt as of Feb. 4, 2019.