Jovian Announces Financial Results for Q3 Fiscal 2009



    Quarter highlighted by continued success at BetaPro

    TORONTO, Feb. 11 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian")
today released its results for the three and nine months ended December 31,
2008.

    
    Q3 Fiscal 2009 Highlights

        -  Revenue was $22.2 million, compared with $25.9 million in Q3
           fiscal 2008
        -  BetaPro Management Inc. ("BetaPro"), which was consolidated into
           Jovian's results in Q2 fiscal 2009, contributed revenue of $3.9
           million in Q3 fiscal 2009
        -  Client assets were $12.7 billion versus $14.5 billion at the end
           of December 31, 2007, and $14.1 billion at the end of September
           30, 2008
        -  Net loss, including a non-cash impairment charge of $9.4 million,
           was $12.9 million, or $0.08 per share, compared with a net loss of
           $1.9 million, or $0.02 per share, in Q3 fiscal 2008
        -  On January 6, 2009, BetaPro announced the launch of the Horizons
           AlphaPro family of ETFs, the first actively managed ETFs offered
           in Canada
    

    "Our client assets experienced a sharp decline last quarter in another
very turbulent period in the Canadian and global equity markets," said Philip
Armstrong, CEO of Jovian. "We saw client assets decline this past quarter due
mainly to market depreciation. We were pleased, however, to see that client
retention at our asset management companies, such as Leon Frazer and T.E.
Wealth, remained high, which is testament not only to their advisors' ability
to manage, but also to the loyalty of their clients."
    Mr. Armstrong continued, "In response to continued market volatility, we
have taken steps to reduce our cost structure over the past few quarters, and
plan to carefully monitor economic and financial developments to determine if
further initiatives are required."
    "We continue to be excited about the success of BetaPro. With $1.9
billion in assets under management as at December 31, 2008, it ranks as the
2nd largest ETF family in Canada, top-10 in North America and top-30 globally.
Subsequent to quarter-end, BetaPro launched the AlphaPro family of ETFs, the
first actively managed ETFs offered in Canada. The growth of our ETF business
means this is now an important component to Jovian, helping us to weather the
current difficult environment."

    
    Selected Financial Data (unaudited)
    -------------------------------------------------------------------------
    in thousands of Canadian       Three months ended     Nine months ended
    dollars except per share      -------------------------------------------
    amounts                       Dec 30/08  Dec 30/07  Dec 30/08  Dec 30/07
    -------------------------------------------------------------------------
    Revenue                          22,228     25,892     68,972     79,258
    -------------------------------------------------------------------------
    Operating expenses               24,985     26,213     77,041     78,673
    -------------------------------------------------------------------------
    Adjusted EBITDA(1)               (2,757)      (321)    (8,069)       585
    -------------------------------------------------------------------------
    Net loss(2)                     (12,878)    (1,939)   (19,550)    (4,715)
    -------------------------------------------------------------------------
    Loss per share - basic
     and fully diluted(2)             (0.08)     (0.02)     (0.12)     (0.04)
    -------------------------------------------------------------------------
    (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, impairment and non-controlling interest.

    (2) Net loss and loss per share, for the current fiscal year, include a
        non-cash impairment charge of $9.4 million largely related to the
        anticipated termination by JovInvestment Management Inc. of
        management contracts with Canadian Medical Discoveries Fund Inc.
    

    Financial Review

    Revenue for the quarter ended December 31, 2008, was $22.2 million,
compared with $25.9 million in the prior year period. Revenue for the quarter
consisted of $14.8 million from Jovian's asset management companies and $7.1
million from MGI Wealth. Excluding the $3.9 million of revenue from BetaPro,
revenue from asset management decreased by 16% due to the decline in client
assets reflecting market depreciation. Revenue from MGI Wealth decreased by
46%, or $6.0 million, primarily as a result of legacy inventory positions held
at MGI Securities and the impact of measures taken in the first quarter to
decrease MGI Securities' capital markets activities to focus on its retail
relationships.
    Operating expenses for the third quarter decreased by 5% to $25.0
million, from $26.4 million in Q3 fiscal 2008, despite a $4.0 million increase
from the consolidation of BetaPro. The decline in expenses reflects steps
Jovian has taken to reduce its cost structure. Management will continue to
evaluate its cost structure in light of unprecedented market volatility.
    Adjusted EBITDA(1) decreased to negative $2.8 million, compared to
negative $0.3 million in Q3 fiscal 2008, reflecting lower revenue
year-over-year.
    The net loss for the quarter was $12.9 million, or $0.08 per share, which
includes a non-cash impairment charge largely related to the anticipated
termination by JovInvestment Management Inc. of management contracts with
Canadian Medical Discoveries Fund Inc. Excluding this charge, the net loss for
Q3 fiscal 2009 would have been $3.5 million, or $0.02 per share, compared to a
loss of $1.9 million, or $0.02 per share, in Q3 fiscal 2008.

    Liquidity and Capital Resources

    During the quarter, the cash balance decreased by $0.9 million to $9.3
million. Cash from operating activities was $3.4 million, which consisted of
the $12.9 million net loss adjusted for the $9.4 million non-cash impairment
charge, $1.1 million of non-cash expenses and $5.8 million from changes in
non-cash operating working capital. Cash from financing activities led to an
outflow of $3.4 million, mainly due to a payment of long-term debt. There was
also a cash outflow from investing activities of $0.9 million, which largely
related to the purchase of property and equipment.
    As at December 31, 2008, cash and cash equivalents listed in securities
owned totaled $24.2 million, and long term debt outstanding was $20.2 million.
    For additional information regarding Jovian's fiscal 2009 third quarter
results, please refer to Jovian'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
(AlphaPro Management Inc., BetaPro Management Inc., Horizons Funds Inc.,
JovFunds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon
Frazer & Associates Inc., MGI Securities Inc., MGI Securities (USA) Inc., MGI
Financial Inc., T.E. Wealth and Felcom Data Services Inc.) manages $13.0
billion of client assets ($6.0 billion in assets under management and $7.0
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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