Jovian Releases Results for the Fourth Quarter and Year Ending March 31, 2009



    TORONTO, June 24 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian")
today released its results for the three months and year ended March 31, 2009.

    
    Fiscal 2009 Highlights

    -   Revenue of $91.3 million, compared to $103.9 million in fiscal 2008
    -   BetaPro Management Inc. ("BetaPro"), which was consolidated into
        Jovian's results beginning Q2 fiscal 2009, contributed revenue of
        $14.9 million
    -   Client assets decreased to $12.0 billion versus $15.0 billion at the
        end of March 31, 2008, primarily in the area of assets under
        administration, with only a small decrease in assets under management
    -   Announced 20:1 consolidation of common shares
    -   Net loss of $24.1 million, or $2.91 (post consolidation) per share,
        including a non-cash impairment charge of $9.4 million incurred
        during the third quarter.
    -   Jovian reported a cash operating loss of $7.4 million for the year
        ended March 31, 2009, compared to $4.8 million for the prior year
    -   Increased ownership of BetaPro to 60% from 45%
    -   Renewed $15 million credit facility until April 2011
    -   Entered into letter of intent to purchase 50% of Hahn Investment
        Stewards & Company Inc.
    

    "In fiscal 2009, despite operating in a time of unprecedented volatility
in the global financial markets, our portfolio companies demonstrated the
benefits of diversification in a challenging operating environment," said
Philip Armstrong, C.E.O. of Jovian. "While our investment dealer and
investment management companies were significantly affected by the adverse
market conditions, our Horizons BetaPro Exchange Traded Funds ("ETF") business
has continued to grow through our BetaPro subsidiary, which contributed an
additional $700 million in assets under management ("AUM") over the prior
year, offsetting the 20 percent decrease in AUM experienced by our investment
managers."
    "BetaPro is now established as the second largest ETF provider in Canada,
with approximately $2.0 billion in assets under management, as at March 31,
2009," added Mr. Armstrong. "Jovian continues to grow its ETF business through
organic initiatives, such as the actively-managed AlphaPro ETF business, which
recently launched the Horizons AlphaPro Gartman Fund and the Horizons AlphaPro
Managed S&P/TSX 60(R) ETF. In addition to these efforts, we are looking to
augment our position in the ETF market through acquisition, with our
subsidiary Jovian Asset Management Inc. having recently entered into a letter
of intent to acquire 50% of Hahn Investment Stewards & Company Inc., a
long-time manager and builder of diversified portfolios through the
utilization of ETFs," he said.
    "In order to generate investor recognition of our portfolio of quality
companies, we completed a 20:1 consolidation of our common shares, which we
believe will support our ongoing efforts to increase investment community
awareness of Jovian," continued Mr. Armstrong.

    
    Selected Financial Data (unaudited)

    -------------------------------------------------------------------------
    in thousands of Canadian dollars     Three months ended     Year ended
    -------------------------------------------------------------------------
                                              Mar      Mar      Mar      Mar
                                            31/09    31/08    31/09    31/08
    -------------------------------------------------------------------------
    Revenues                               22,343   24,685   91,315  103,943
    -------------------------------------------------------------------------
    Compensation and Benefits, Selling,    26,336   26,831  103,377  105,504
    General and Administration
    -------------------------------------------------------------------------
    Adjusted EBITDA(2)                     (3,993)  (2,146) (12,062)  (1,561)
    -------------------------------------------------------------------------
    Stock-based Compensation Expense(1)        82      361      739      721
    -------------------------------------------------------------------------
    EBITDA(2)                              (4,075)  (2,507) (12,801)  (2,282)
    -------------------------------------------------------------------------
    Loss                                   (4,516) (11,411) (24,066) (16,126)
    -------------------------------------------------------------------------
    Loss Per Share - Basic(*)               (0.54)   (1.55)   (2.91)   (2.51)
    -------------------------------------------------------------------------
    Loss Per Share - Diluted(*)             (0.54)   (1.55)   (2.91)   (2.51)
    -------------------------------------------------------------------------

    (1) For measurement purposes, stock-based compensation expense, which is
        a non-cash item, is excluded from compensation and benefits expense
        in this table in order to determine Adjusted EBITDA.
    (2) EBITDA and Adjusted EBITDA are non-GAAP performance measures utilized
        by Jovian. EBITDA is defined here as earnings before interest on
        long-term debt, taxes, depreciation, amortization, impairment,
        revaluation of share redemption liability and non-controlling
        interest. Adjusted EBITDA is EBITDA adjusted for stock-based
        compensation.
    (*) Earnings per share for all periods have been adjusted to reflect the
        20:1 common shares consolidation.
    

    Financial Review

    Fiscal 2009

    Revenue for the year ended March 31, 2009, was $91.3 million and included
a $3.5 million non-recurring loss on investment, compared to $103.9 million in
the prior year. The decrease in revenue is attributable to the weak
performance of the financial markets and the resulting impact on revenue
generating client assets. Client assets decreased by $3.0 billion or 20
percent compared to the prior year. The majority of the decrease was
attributable to the Assets Under Administration ("AUA") classification.
Jovian's AUM classification for the year ended March 31, 2009, was largely
consistent with the prior year, with assets decreasing to $5.6 billion,
compared to $5.8 billion for the year ended March 31, 2008. The reduction in
AUM was offset by the dramatic growth of Jovian subsidiary BetaPro's AUM.
BetaPro's financial results were consolidated with Jovian's beginning in July
2008.
    Expenses for the year ended March 31, 2009, were $106.0 million, compared
to $107.2 million for the year ended March 31, 2008, exclusive of non-cash
impairment charges to intangible assets. Jovian recorded impairment charges of
$9.4 million in fiscal 2009 and $12.9 million in fiscal 2008, which were
largely related to the termination by JovInvestment Management Inc. of
management contracts with Canadian Medical Discoveries Fund Inc.
    Adjusted EBTIDA(2), a key management performance measure, was negative
$12.1 million, compared to negative $1.6 million in fiscal 2008, due to a
decline in revenue, particularly in the wealth management segment. The net
loss for the year was $24.1 million, or $2.91 per share (basic and diluted),
compared to a net loss of $16.1 million, or $2.51 per share (basic and
diluted), for the corresponding period ended March 31, 2008.

    Fourth Quarter Fiscal 2009

    Revenue for the quarter ended March 31, 2009, was $22.3 million, compared
to $24.7 million in the same period in the prior year. Total expenses for the
three-month period ended March 31, 2009, were $26.9 million, compared to $23.2
million in the corresponding quarter of the prior year, exclusive of the $12.9
million impairment charge.
    Adjusted EBITDA(2) decreased to negative $4.0 million, compared to
negative $2.1 million in the fourth quarter of fiscal 2008, due to the
decrease in revenue. The net loss for the quarter ended March 31, 2008, was
$4.5 million, or $0.54 per share (basic and diluted), compared to a net loss
of $11.4 million, or $1.55 per share (basic and diluted), for the
corresponding period ended March 31, 2008.

    Liquidity and Capital Resources

    Cash and highly liquid investments included in securities owned were
$19.7 million as at March 31, 2009, compared with $24.2 million as at March
31, 2008. Jovian recorded a cash operating loss of $7.4 million and had net
working capital obligations of $4.9 million. Financing activities during the
fiscal year included the receipt of $2.3 million from the issuance of share
capital and a $6.5 million repayment of long term debt.
    Investing activities during the quarter reduced cash by $5.5 million and
was largely a result of a $3.1 million increase in plant and equipment and
$2.8 million for business acquisitions, net of cash acquired. The balance of
the decrease in cash flows for the period resulted from the change in non-cash
operating working capital, as presented in the statement of cash flows.

    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 Financial Inc., MGI Securities Inc., MGI
Securities (USA) Inc., T.E. Wealth and Felcom Data Services Inc.) manages
approximately $12.0 billion of client assets ($6.0 billion in assets under
administration and $6.0 billion in assets under management). 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 Philip Armstrong, C.E.O., Jovian
Capital Corporation, (416) 933-5752

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Jovian Capital Corporation

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