Mr. Tom Felkai reports
INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR THE FIRST QUARTER OF FISCAL 2018 AND DECLARES DIVIDEND
Integrated Asset Management Corp. has released unaudited financial results for the quarter ended Dec. 31, 2017.
(thousands except per share amounts)
Three months ended Dec. 31, 2017 Three months ended Dec. 31, 2016
Invested capital $1,818,000 $1,629,000
Committed capital to be invested $572,000 $896,000
Total assets under management $2,390,000 $2,525,000
Revenues before the undernoted $3,461 $2,766
Investment gain (loss) $1 $(476)
Total revenues $3,462 $2,290
Adjusted EBITDA (1) $685 $72
Net income (loss) from continuing operations $460 $(22)
(Loss) from discontinued operations held for sale $- $(8)
Net gain from sale of discontinued operations $- $-
Net income (loss) attributed to common
shareholders of the corporation $474 $(26)
Earnings per share
Continuing operations $0.02 $(0.00)
Discontinued operations - $(0.00)
Total $0.02 $(0.00)
(1) Adjusted earnings before interest, taxes, depreciation and amortization, and stock-based compensation is a
non-international financial reporting standards earnings measure used by Integrated Asset.
John Robertson, president and chief executive officer, said: "We are very pleased with the results as the first quarter is traditionally a slow quarter as it is cut short by the holiday season. The outlook for the rest of the year is very encouraging."
The corporation reported a net income from continuing operations for the quarter ended Dec. 31, 2017, of $460,000 (two cents per share) versus net loss from continuing operations in the quarter ended Dec. 31, 2016, of $22,000. Management fees and other income were higher, at $3.5-million versus $2.8-million in the same quarter in fiscal 2017. The increase in management fees and other income compared with fiscal 2017 is the result of deployment of commitments at higher rates and interest income from investments in funds managed by the corporation. The investment loss of $500,000 in the comparable quarter of the previous year relates to investments that have fully been redeemed and relate to a discontinued subsidiary.
Adjusted EBITDA improved to $700,000 from $100,000 in the same quarter of the previous fiscal year. Cash flow from operations was $500,000 this year compared with $200,000 in the previous year. The corporation reported consolidated expenses for the quarter of $2.8-million, up $400,000 from $2.4-million in the first quarter of fiscal 2017. 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 professional fees.
Assets and committed capital under management for the quarter ended Dec. 31, 2017, was down $84-million at $2.4-billion compared with $2.5-billion at Sept. 30, 2017. Of that, approximately $570-million was committed but not yet invested capital from real estate, private debt and infrastructure debt operations.
John Robertson, president and CEO, said: "Results are unfolding as expected. Revenue before investment gain (loss) was up 25 per cent over those of the same period in fiscal 2017. Net income was $460,000, as opposed to a loss in the comparable period of the prior year. The loss on investment in the first quarter of fiscal 2017 related to seed capital in a fund managed by a discontinued subsidiary. This investment was liquidated in January, 2017.
"AUM increases significantly in years that new funds are raised. Our private debt group's AUM declines as distribution to investors of routine principal repayments received on loans, until the new funds are raised. In 2018 the private debt group is raising fund VI and a high-yield fund. AUM declined as expected as our real estate group is in the process of winding up GPM 10 and sold six of the properties during the quarter. In addition, the real estate group's open-end fund raises capital quarterly. Our target is to raise another $1-billion of committed capital in the next 12 months."
The board of directors of the corporation has approved payment of a quarterly cash dividend in the amount of two cents per outstanding share, totalling approximately $600,000 based on the number of shares outstanding at that date. This dividend will be paid on March 20, 2018, to shareholders of record on Feb. 27, 2018.
For detailed financial statements for the quarter, including management's discussion and analysis, please refer to Integrated Asset's website or SEDAR after Feb. 7, 2018.
Integrated Asset is one of Canada's leading alternative asset management companies with approximately $2.4-billion in assets and committed capital under management in real estate and private debt as of Feb. 6, 2018.
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