Integrated Asset Management Corp. Announces Results for Fiscal 2018 and Declares Dividend

CBJ Newsmakers

TORONTO, Nov. 30, 2018 (GLOBE NEWSWIRE) — Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced its financial results for the fiscal year ended September 30, 2018.

John Robertson, CEO, said “This was our first full year of operations pursuing a changed strategy of focusing on our two core businesses, private debt and real estate, and becoming exclusively an institutional manager. Results were very strong on every front.”

Revenues for the 12 months of fiscal 2018 rose 31.3% over the same period in 2017; excluding performance fees in 2018, revenues rose 17.6%. Expenses were up 6.4% in fiscal 2018 over 2017, primarily as a result of bonuses and costs related to the realization of the real estate performance fee. Selling, general and administration expenses, which represent the vast majority of expenses, increased just 2.5%.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation (“Adjusted EBITDA”) increased 2.8 times, to $5.1 million from $1.8 million in fiscal 2017. Adjusted EBITDA net of performance fees after associated costs and non-controlling interest were $3.5 million. Net income from continuing operations tripled to $3.6 million in fiscal 2018 versus $1.2 million in the same period in 2017.

Mr. Robertson noted “These solid results, with which we are very pleased, illustrate the positive leverage of increased deployment of committed capital, generating significant increase in revenue with nominal increase in operating expenses.

In aggregate, assets and committed capital under management (“AUM”) were approximately $2.3 billion as at September 30, 2018 down $167 million from approximately $2.5 billion at the prior year end. AUM in IAM Private Debt decreased approximately $188 million in fiscal 2018 as a result of distributions to investors of routine principal repayments received on loans in pre-existing private debt funds and early prepayments on loans. AUM in IAM Real Estate increased approximately $21 million in fiscal 2018. The net increase resulted from raising approximately $32 million in the open IAM Real Property Fund over the course of fiscal 2018, a joint venture of $40 million with an institutional investor, and increase in the appraised values of existing assets. The increase was partially offset from the sale, upon maturity, of the Real Estate Group’s GPM Fund 10 (AUM at September 30, 2017 of approximately $86 million).

Management fees are earned on invested capital, not committed capital. The private debt and real estate teams invested approximately $360 million during the year. At year end, there was combined uninvested committed capital of $373 million for real estate, private debt and infrastructure debt. Of this uninvested capital, all but $200 million has now been committed and is expected to close in Q1 and Q2 of fiscal 2019. As these commitments are invested, they will earn commitment and acquisition fees and increase recurring long-term management fee revenue.

The IAM Private Debt team launched its 6th Private Corporate Debt Fund in fiscal 2018 and a new High Yield Fund. Marketing of the 6th Private Debt Fund is well advanced, with an expected first close in December of this year. Interest has been very strong from current and new investors, and we expect that this could be our largest fund raise ever.

Over the course of fiscal 2018, the dividend payment policy was changed from annual to quarterly, and the annual rate increased from $0.06 per share at the beginning of the year to $0.12 per share at the end of the fiscal year.

A dividend for the quarter of $0.03 per common share was approved by the Board of Directors on November 29, 2018 for shareholders of record on December 11, 2018. The dividend will be paid December 21, 2018.

John Robertson, CEO said “These excellent results have validated our strategy and our execution. IAM is well positioned to continue this growth.




3 Months Ended
September 30, 2018
(thousands except per
share amounts)
3 Months Ended
September 30, 2017
(thousands except per
share amounts)
Year Ended
September 30, 2018
(thousands except per
share amounts)
Year Ended
September 30, 2017
(thousands except per
share amounts)
Invested Capital $1,934,100   $1,854,300   $1,934,100   $1,854,300  
Committed Capital to be Invested 372,900   619,200   372,900   619,200  
 Total Assets Under Management (“AUM”) $2,307,000   $2,473,500   $2,307,000   $2,473,500  
Revenues before the undernoted $5,068   $3,263   $16,104   $14,216  
Performance fees $-   $-   $1,873   $-  
Investment loss $(46)   $(21)   $(48)   $(559)  
Total revenues $5,022   $3,242   $17,929   $13,657  
Net performance fees(1) $-   $-   $1,395   $-  
Adjusted EBITDA(1) $1,663   $66   $5,105   $1,819  
Net income from continuing operations $1,199   $136   $3,623   $1,174  
Net Gain from discontinued operations, net of income taxes $-   $-   $-   $630  
Net income attributed to common shareholders of the Corporation $1,190   $133   $3,364   $1,808  
Earnings per share        
Continuing operations $0.04   $0.00   $0.12   $0.04  
Discontinued operations $-   $-   $-   $0.02  
Total $0.04   $0.00   $0.12   $0.06  

(1) Net Performance Fees and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, and stock-based compensation (“Adjusted EBITDA”) are non-IFRS earnings measures used by IAM.

For detailed financial statements for the year, including Management’s Discussion and Analysis and the Corporation’s Annual Information Form, please refer to IAM’s website at or SEDAR at after December 10, 2018.

IAM 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, private debt and infrastructure debt as of November 29, 2018.

This press release may contain forward-looking statements with respect to IAM and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in any such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.

For further information, please contact
Tom Felkai, CFO
416 933 8263