TORONTO, Feb. 04, 2019 (GLOBE NEWSWIRE) -- Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced unaudited financial results for the first quarter ended December 31, 2018.
John Robertson, President and CEO, said, “We are very pleased with the financial progress we have made, which validates our institutionally focused business plan. Our results in Q1 2019 versus Q1 2018 clearly demonstrate improved results in both Real Estate and Private Debt.”
The Corporation reported net income for the quarter ended December 31, 2018 of $0.8 million ($0.03 per share) versus net income in the quarter ended December 31, 2017 of $0.5 million ($0.02 per share). Management fees and other income were higher, at $4.6 million versus $3.5 million in 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 $0.7 million in the same quarter of the previous fiscal year. Cash flow from operations was $0.9 million this year compared to $0.5 million in the previous year. The Corporation reported consolidated expenses for the quarter of $3.4 million, up $0.6 million 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 December 31, 2018 declined marginally by $51 million to $2.3 billion compared to $2.3 billion at September 30, 2018. Of the AUM at December 31, 2018, approximately $256 million was committed but not yet invested capital from real estate, private debt and infrastructure debt operations.
John Robertson, President and CEO, said, “Comparing the first quarter of 2019 to the first quarter of 2018, revenue was 34% higher, Adjusted EBITDA increased 82%, and net income rose 79%. 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 $0.06 per share and for Q1 this year our quarterly dividend is $0.03 per share ($0.12 per share annually).
"On January 15, 2019, the Corporation announced the closing of IAM Private Debt Fund VI at $843 million. This was our largest fund raise yet, 25% bigger than our previous largest fund raise, 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 $0.03 per outstanding share, totaling approximately $0.8 million based on the number of shares outstanding at that date. This dividend will be paid on March 8, 2019 to shareholders of record on February 21, 2019.
| HIGHLIGHTS | 3 Months Ended December 31, 2018 (thousands except per share amounts) | 3 Months Ended December 31, 2017 (thousands except per share amounts) | ||
| 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) | $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 | ||
(1) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation (“Adjusted EBITDA”) is a non-IFRS earnings measure used by IAM.
For detailed financial statements for the quarter, including Management’s Discussion and Analysis, please refer to IAM’s website at www.iamgroup.ca or SEDAR at www.sedar.com after February 6, 2019.
IAM 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 February 4, 2019.
For further information, please contact
Tom Felkai, CFO
416 933 8263
tfelkai@iamgroup.ca