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.
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.
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. “
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