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Enter Symbol
or Name
USA
CA



Integrated Asset Management Corp
Symbol IAM
Shares Issued 27,848,527
Close 2018-05-03 C$ 1.55
Market Cap C$ 43,165,217
Recent Sedar Documents

Integrated Asset earns $883,000 in Q1 2018

2018-05-03 10:05 ET - News Release

Mr. John Robertson reports

INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR THE SECOND QUARTER OF FISCAL 2018 AND DECLARES DIVIDEND

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

  
 
                                           HIGHLIGHTS 
                               (thousands except per-share amounts)

                                                          Three months ended                Six months ended
                                             March 31, 2018   March 31, 2017   March 31, 2018 March 31, 2017

Invested capital                                 $1,771,000       $1,780,000       $1,771,000     $1,780,000
Committed capital to be invested                   $542,000         $734,000         $542,000       $734,000
Total assets under management                    $2,313,000       $2,514,000       $2,313,000     $2,514,000
Revenues before the undernoted                       $4,085           $4,059           $7,546         $6,825
Performance fees                                     $1,199              $ -           $1,199            $ -
Investment gain (loss)                                  $(0)            $(62)              $1          $(538)
Total revenues                                       $5,284           $3,997           $8,746         $6,287
Net performance fees (1)                               $899              $ -             $899            $ -
Adjusted EBITDA (1)                                  $1,471             $882           $2,156           $954
Net income from continuing operations                $1,051             $498           $1,511           $476
Gain on sale of discontinued operations,
net of income taxes                                     $ -             $699              $ -           $699
Net (loss) from discontinued operations,
net of income taxes                                     $ -             $(61)             $ -           $(69)
Net income attributed to common
shareholders of the corporation                        $883           $1,146           $1,357         $1,120
Earnings per share
Continuing operations                                 $0.03            $0.02            $0.05          $0.02
Discontinued operations                                 $ -            $0.02              $ -          $0.02
Total                                                 $0.03            $0.04            $0.05          $0.04

(1) Net performance fees and adjusted earnings before interest, taxes, depreciation and amortization, and
stock-based compensation are non-international financial reporting standards earnings measure used by
Integrated Asset.

John Robertson, president and chief executive officer, said: "We are pleased with the results and progress we are making. Revenue, EBITDA, cash flow from operations and net income all above from the comparable period in 2017."

The corporation reported net income from continuing operations for the quarter ended March 31, 2018, of $1.1-million (three cents per share) versus net income from continuing operations in the quarter ended March 31, 2017, of $500,000 (two cents per share). Management fees and other income were higher, at $4.1-million versus $4-million in the same quarter in 2017.

Management fees and other income increased despite the maturity of the private debt group's IPD Fund I and the real estate group's GPM Fund 10, which sold its assets in the quarter. Both of these maturing funds had a lifespan in excess of 12 years. The reduction in fees from funds invested in assets and committed capital under management was offset by a one-time management fee earned of $700,000 on the final sale of a segregated fund asset in the private debt group.

In the current quarter the maturity of the real estate group's GPM Fund 10 resulted in the corporation realizing performance fee revenue of approximately $1.2-million before associated costs and taxes. After deducting employee bonuses and non-controlling interest, the corporation realized $700,000 before income taxes.

Adjusted earnings before interest, taxes, depreciation and amortization improved to $1.5-million from $900,000 in the same quarter of the previous fiscal year. Cash flow from operations was $1.3-million for the quarter compared with $700,000 in the previous year's quarter. The corporation reported consolidated expenses for the quarter of $3.8-million, up $700,000 from $3.1-million in the second quarter of fiscal 2017. Expenses were higher relative to the comparative quarter in the previous year primarily due to costs associated with staffing changes and an increase in the employee bonus accrual as a result of increased profits.

AUM for the six months ended March 31, 2018, declined by $161-million to $2.3-billion compared with $2.5-billion at Sept. 30, 2017. This was due to the sale of real estate group's GPM Fund 10 and the normal amortization of loans in the private debt group's funds. Approximately $542-million of the AUM is committed but not yet invested capital in real estate, private debt and infrastructure debt funds.

John Robertson, president and chief executive officer, said: "While we are pleased with the performance fee realized in the quarter, it was a result of assets sold during the quarter thus reducing AUM. Following quarter end in mid-April, the real estate group closed the acquisition of a $62.4-million portfolio of real estate assets which largely replaces the assets sold in GPM 10. This combined with the deployment of committed capital in both the real estate group and the private debt group, is expected to lead to growth of management fee income in coming quarters. The outlook for the rest of the year remains very positive. 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 June 20, 2018, to shareholders of record on May 24, 2018. For detailed financial statements for the quarter, including management's discussion and analysis, please refer to Integrated's website or SEDAR after May 8, 2018. Integrated Asset 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 and private debt as of May 2, 2018.

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