Mr. John Robertson reports
INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR THE THIRD QUARTER OF FISCAL 2018 AND DECLARES INCREASED DIVIDEND
Integrated Asset Management Corp. has released financial results for the quarter ended June 30, 2018.
HIGHLIGHTS
(thousands except per-share amounts)
Three months ended Nine months ended
June 30 June 30
2018 2017 2018 2017
Invested Capital $1,788,000 $1,820,000 $1,788,000 $1,820,000
Committed Capital to be Invested 513,000 685,000 513,000 685,000
Total Assets Under Management (AUM) 2,301,000 2,505,000 2,301,000 2,505,000
Revenues before the undernoted 3,490 4,128 11,035 10,953
Performance fees 674 - 1,873 -
Investment (loss) (3) - (2) (538)
Total revenues 4,161 4,128 12,906 10,415
Net performance fees 496 - 1,395 -
Adjusted EBITDA 1,286 799 3,441 1,753
Net income from continuing
operations 913 561 2,423 1,038
Gain on sale of discontinued
operations, net of income taxes - - - 699
Net (loss) from discontinued
operations, net of income taxes - - - (69)
Net income attributed to
common shareholders of
the corporation 817 555 2,173 1,675
Earnings per share
Continuing operations 0.03 0.02 0.08 0.04
Discontinued operations - - - 0.02
Total 0.03 0.02 0.08 0.06
John Robertson, president and chief executive officer, said: "Despite lower investing activity in the quarter, revenue, EBITDA (earnings before interest, taxes, depreciation and amortization), cash flow from operations and net income were all above the comparable period of 2017. We expect a significant increase in investing in the fourth quarter over that of the current quarter."
The corporation reported net income from continuing operations for the quarter ended June 30, 2018, of $900,000 (three cents per share) versus net income from continuing operations in the quarter ended June 30, 2017, of $600,000 (two cents per share). Management fees and other income were lower, at $3.5-million versus $4.1-million in same quarter in 2017. The management fees and other income declined in the quarter as a result of the decrease in AUM and lower investing activity in the quarter.
In the current quarter, the Real Estate Group's GPM Fund 10 realized an additional performance fee of approximately $0.7 million before associated costs and taxes. After deducting employee bonuses and non-controlling interest, the Corporation realized $0.4 million before income taxes.
Adjusted EBITDA improved to $1.3 million in the quarter ended June 30, 2018, from $800,000 in the same quarter of the previous fiscal year. Cash flow from operations was $1.1-million for the quarter compared with $700,000 in the previous year's quarter. The corporation reported consolidated expenses for the quarter of $2.9-million, down $500,000 from $3.4-million in the third quarter of fiscal 2017. Expenses were lower relative to the comparative quarter in the previous year primarily due to costs associated with staffing changes recognized in that comparative quarter.
AUM (assets under management) for the nine months ended June 30, 2018, declined by $173-million to $2.3-billion compared to $2.5-billion at Sept. 30, 2017. This was a result of the sale upon maturity of the real estate group's GPM Fund 10 and the normal amortization of loans in the private debt group's funds. Approximately $513-million of the AUM is committed but not yet invested capital in real estate, private debt and infrastructure debt funds.
Mr. Robertson said: "We are pleased we have achieved net income of three cents per share in the quarter. This was a result of a strong quarter for the real estate group in both acquisition and performance fees. The private debt group had a slower than anticipated quarter as a result of delays in closing of transactions in the quarter. These transactions are expected to close early in the fourth quarter.
"We are particularly pleased that cash from operations has increased significantly to $2.9-million for the nine months ended June 30, 2018, up from $1.6-million in the comparable period in fiscal 2017.
"The outlook for the rest of the year remains very positive. We are making progress toward our previously stated target of raising $1-billion of committed capital in the next nine months."
The board of directors of the corporation has approved payment of a quarterly cash dividend in the amount of three cents per outstanding share, totalling approximately $800,000 based on the number of shares outstanding on Aug. 2, 2018. This dividend will be paid on Sept. 12, 2018, to shareholders of record on Aug. 16, 2018.
Mr. Robertson said, "The quarterly dividend increase from two cents per outstanding share to three cents per outstanding share is sustainable based on the corporation's strong results year to date, the anticipated growth in revenue and our healthy cash position."
For detailed financial statements for the quarter, including management's discussion and analysis, please refer to the company's website or SEDAR after Aug. 8, 2018.
About Integrated Asset Management Corp.
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 and private debt as of Aug. 2, 2018.
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