Jovian Announces Financial Results for Q1 2009



    
    Total client assets in portfolio companies rise 7% over fiscal year-end
    to $16.0 billion

    TORONTO, Aug. 13 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian")
today released its results for the three months ended June 30, 2008.

    Q1 Fiscal 2009 Highlights

    -   Revenue of $23.4 million, compared with $30.5 million in Q1 2008
    -   Client assets rose 7% to $16.0 billion versus $15.0 billion at the
        end of June 30, 2007 and $15.0 billion at the end of March 31, 2008
    -   Net loss of $2.8 million, or $0.02 per share, compared with a loss of
        $54,000 in Q1 2008
    -   Horizon BetaPro Funds reached a record $1.5 billion in assets under
        management (AUM) and its ETFs represented close to 68% of total TSX
        ETF trading volumes in June 2008
    -   Increased ownership in BetaPro Management Inc. ("BetaPro") by 6% and
        subsequently closed in escrow the purchase of an additional 15%,
        increasing ownership to 60%
    -   MGI Securities Inc. ("MGI") implemented cost reduction initiatives to
        bring costs in line with reduced revenue base
    

    "BetaPro continues to reach record assets under management and trading
volumes, and was the biggest driver of the 7% rise in client assets in our
portfolio companies during the quarter. This continued strong performance
supported our decision to increase our ownership in BetaPro during the
quarter," said Philip Armstrong, CEO of Jovian. "To address the decline in
transactional revenue, MGI has taken measures to decrease its cost base and
capital markets activities. We are prepared to revisit a growth strategy for
MGI's capital markets division if general market conditions improve."

    Financial Review

    Revenue for the quarter ended June 30, 2008, was $23.4 million, compared
to $30.5 million in the prior year period. The biggest impact to revenue
related to MGI, where revenue decreased by $5.2 million to negative
$0.7 million. MGI's capital markets group experienced continued weakness in
their focus sectors, junior gold and mining. In light of ongoing challenging
capital markets, MGI implemented cost reduction initiatives and decreased its
capital market activities and operations during the quarter. As a result, MGI
incurred approximately $0.7 million of non-recurring expenses, of which
$0.6 million related to compensation and benefits. It is anticipated that
MGI's current fixed-cost platform will now be at a level that is supported by
its revenue capability.
    Operating expenses for the three-month period ended June 30, 2008, were
$26.3 million, compared with $30.5 million in Q1 2008, representing a decrease
of $4.2 million or 14%.
    Adjusted EBITDA(1) decreased to negative $1.8 million, compared to
$2.3 million in Q1 2008, mainly due to the decline in MGI transactional
revenue. The negative EBITDA from the wealth management division was partially
offset by a positive contribution from the asset management division. The net
loss for the quarter ended June 30, 2008, was $2.8 million, or $0.02 per
share, compared to a net loss of $54,000, or $0.00 per share, for the three
months ended June 30, 2007.

    
    Selected Financial Data (unaudited)
    -------------------------------------------------------------------------
    in thousands of Canadian Dollars                     Three months ended
    -------------------------------------------------------------------------
                                                       Jun 30/07   Jun 30/08
    -------------------------------------------------------------------------
    Revenues                                              30,481      23,424
    -------------------------------------------------------------------------
    Operating expenses                                    28,280      25,356
    -------------------------------------------------------------------------
    Adjusted EBITDA(1)                                     2,275      (1,768)
    -------------------------------------------------------------------------
    Net income (loss)                                        (54)     (2,836)
    -------------------------------------------------------------------------
    Earnings (loss) per share - basic and fully diluted    (0.00)      (0.02)
    -------------------------------------------------------------------------

    (1) Adjusted EBITDA, a non-GAAP performance measure utilized by Jovian,
        consists of EBITDA adjusted for non-cash stock-based compensation.
        EBITDA is defined as earnings before interest on long-term debt,
        taxes, depreciation, amortization, revaluation of share redemption
        liability and non-controlling interest.
    

    Liquidity and Capital Resources

    As at June 30, 2008, cash and cash equivalents listed in securities owned
were $28.0 million and long term debt outstanding was $20.5 million.
    During the quarter, the cash balance decreased from $13.3 million to
$11.0 million. The largest contributors to the $2.6 million decline included
the $2.8 million loss for the period and the $2.1 million acquisition of 6% of
BetaPro, partially mitigated by the $1.6 million cash inflow from working
capital and the $0.5 million of proceeds from issuance of share capital.
    For additional information regarding Jovian's fiscal 2009 first quarter
results, please refer to the Company's Management's Discussion and Analysis
and its financial statements available at www.joviancapital.com and on SEDAR
at www.sedar.com.

    About Jovian Capital Corporation

    Jovian acquires, creates and grows financial services companies
specializing in wealth and asset management. The Jovian group of companies
(MGI Securities Inc., MGI Securities (USA) Inc., Rice Financial Group Inc.,
BetaPro Management Inc., Horizons Funds Inc., JovFunds Management Inc.,
JovFunds Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc.,
T.E. Wealth and Felcom Data Services Inc.) manages $16.0 billion of client
assets ($6.5 billion in assets under management and $9.5 billion in assets
under administration). Additional information is available at
www.joviancapital.com and www.sedar.com.





For further information:

For further information: Don Sangster, Investor Relations, Jovian
Capital Corporation, (416) 933-5744; or Jason Mackey, C.F.O., Jovian Capital
Corporation, (416) 933-5755

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Jovian Capital Corporation

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