Integrated Asset Management Corp. (“IAM”) (TSX:IAM) today announced unaudited financial results for the quarter ended March 31, 2017. Net earnings for the quarter ended March 31, 2017 from continuing operations were $0.5 million or $0.02 per share versus net loss from continuing operations of $0.0 million or $(0.00) per share in the quarter ended March 31, 2016. Management fees and other income were higher, at $4.0 million versus $2.6 million in the same quarter in 2016.
Earnings before interest, taxes, depreciation and amortization, and stock based-compensation (“EBITDA”) improved to $0.9 million from negative $0.2 million in the same quarter of the previous fiscal year. Investment losses of $0.1 million, which are not reflected in the calculation of EBITDA, contributed negatively to net income in the quarter.
John Robertson, President and CEO, said “We first announced in 2014 our strategy of focusing on our two core businesses, private debt and real estate, and becoming a pure-play institutional manager. The closing of the sale on March 31, 2017 of our managed futures business completed the divestiture of non-core businesses. Private debt and real estate have been growing and are performing well.
We earn our management fees on invested capital, not committed capital. The debt and real estate teams combined in the quarter to invest $151 million. This earned a total of $1.5 million in acquisition and commitment fees, as well as making a meaningful increase in recurring, long-term management fee revenue, compared to the same quarter of fiscal 2016, in which we earned $0.3 million in acquisition and commitment fees. We are pleased with these results and gratified by the success of our strategy. Next quarter will reflect exclusively the results of our core operations. We believe IAM is well-positioned to continue to build on the strength reflected in these results.
During the second quarter, we made good progress in deploying committed but uninvested capital. We are generating steady growth in recurring, long-term management fees which will continue for the balance of the year as additional investments are made. As a result, we expect to see further improvement in earnings as we experienced in the second quarter and more stable earnings as recurring, long-term management fees grow.”
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