Jovian Releases Results for the Year and Fourth Quarter Ending March 31, 2010

Client Assets Increased by $1.7 Billion Over Fiscal 2009; For the Year Ended March 31, 2010, EBITDA Increased to $1.6 Million from Negative $12.8 Million for the Prior Year

TORONTO, June 23 /CNW/ - Jovian Capital Corporation (TSX: JOV) ("Jovian") today released its results for the three months and year ended March 31, 2010.

    Fiscal 2010 Highlights

    -   Revenue of $111.3 million, compared to $91.1 million in fiscal 2009
    -   Client assets increased by $1.7 billion to $11.7 billion from $10.0
        billion in fiscal 2009
    -   Completed 20:1 consolidation of common shares
    -   Sold Felcom Data Services business to CIBC Mellon for $4.2 million
    -   Purchased 50% of Hahn Investment Stewards & Company Inc.
    -   Completed investment in BetaShares Holding Pty Ltd ("BetaShares

    Subsequent to Fiscal Year End:

    -   Completed $10 million private placement of convertible debentures
    -   BetaPro Management Inc. ("BetaPro") launched commodity spread
        Exchange Traded Funds ("ETFs")

"In fiscal 2010, as we emerged from the global financial crisis, we were able to deliver positive results by continuing to invest in the carefully managed growth of our businesses," said Philip Armstrong, CEO of Jovian. "During the year, our client assets increased by $1.7 billion, thanks largely to the growth of our asset management and ETFs businesses.

In the asset management segment, BetaPro continued its exceptional performance in fiscal 2010, launching six innovative new ETFs, while our AlphaPro subsidiary introduced four new actively managed ETFs products during the year. Together, BetaPro and AlphaPro contributed $2.3 billion to our total AUM in fiscal 2010. In addition, T.E. Wealth is continuing to win managed funds from the First Nations, making it a significant party in managing First Nations monies, while Leon Frazer's philosophy of investing in companies 'that grow their dividends' continues to produce superior returns, as it has for the last 70 years."

"We continue to build on our industry-leading position in the ETFs space through acquisitions and investments in new markets. During the year we completed our purchase of a 50% interest of Hahn Investment Stewards and re-branded the company as Horizons Hahn Investment Stewards," continued Mr. Armstrong. "We have also taken steps to establish an international presence, through our investment in BetaShares Holdings, a company that intends to offer ETFs in the young and growing Australian ETFs market."

"Our balance sheet remains strong and, subsequent to year end, in order to support our ability to continue to grow and acquire, we completed a $10 million private placement of convertible debentures. We have also entered into a letter of intent to conduct a $15 million brokered private placement of secured bonds. The proceeds of these transactions will lower our overall borrowing costs, while providing us with the financial flexibility required to fund potential future acquisitions," added Mr. Armstrong.

    Selected Financial Data (unaudited)
    in thousands of
    Canadian dollars                   Year Ended        Three Months Ended
                                  Mar 31/10  Mar 31/09  Mar 31/10  Mar 31/09
    Revenues                        111,281     91,123     28,599     22,343
    Compensation and Benefits,
     Selling, General and
     Administration                 108,748    103,185     27,557     26,336
    Adjusted EBITDA(2)                2,533    (12,062)     1,042     (3,993)
    Stock-based Compensation
     Expense(1)                         973        739        220         82
    EBITDA(2)                         1,560    (12,801)       822     (4,075)
    Loss                             (2,939)   (24,066)    (1,299)    (4,516)
    Loss Per Share - Basic*         (0.35)     (2.91)     (0.15)     (0.54)
    Loss Per Share - Diluted*       (0.35)     (2.91)     (0.15)     (0.54)
    (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, gains on sale and other
        income, and non-controlling interest. Adjusted EBITDA is EBITDA
        adjusted for stock-based compensation.
    * Loss per share for all periods have been adjusted to reflect the 20:1
        common shares consolidation.

Financial Review

Fiscal 2010

Revenue for the year ended March 31, 2010, was $111.3 million, compared to $91.1 million in the prior year. The increase in revenue was largely attributable to the significant AUM growth contributed by BetaPro and AlphaPro which, combined, contributed $2.3 billion to total AUM as at March 31, 2010. During the year, total client assets increased by $1.7 billion compared to the prior year. This represents an increase in AUM and AUA of $1.0 billion and $0.7 billion, respectively.

Expenses for the year ended March 31, 2010, were $114.2 million, compared to $115.2 million for the year ended March 31, 2009. Exclusive of gains on sale and other income, expenses for March 31, 2010, were $118.3 million, compared to $105.8 million exclusive of an impairment charge of $9.4 million for the twelve months ended March 31, 2009.

Adjusted EBTIDA(2), a key management performance measure, improved to $2.5 million, from negative $12.1 million in fiscal 2009, reflecting improving market conditions, client asset structure and the corresponding impact on revenue generation. Net loss for the year was $2.9 million or ($0.35) per share (basic and diluted), compared with a $24.1 million loss or ($2.91) per share (basic and diluted) in fiscal 2009.

Fourth Quarter Fiscal 2010

Revenue for the quarter ended March 31, 2010, was $28.6 million, compared to $22.3 million in the same period in the prior year. Total expenses for the three-month period ended March 31, 2010, were $29.9 million, compared to $26.8 million in the corresponding quarter of the prior year.

Adjusted EBITDA(2) was $1.0 million during the fourth quarter of fiscal 2010, compared to negative $4.0 million in the fourth quarter of fiscal 2009. The net loss for the quarter ended March 31, 2010, was $1.3 million or ($0.15) per share (basic and diluted), compared to a net loss of $4.5 million or ($0.54) per share (basic and diluted) for the corresponding period ended March 31, 2009.

Liquidity and Capital Resources

Cash and highly liquid investments included in securities owned were $31.8 million as at March 31, 2010, compared with $19.7 million as at March 31, 2009. For the twelve months ended March 31, 2010, Jovian reported an increase in cash and cash equivalents of $7.9 million. The increase resulted largely from investing activities including $13.2 million proceeds received on dispositions, net of $2.5 million pertaining to property, software and investment purchases.

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 Exchange Traded Funds Inc., Hahn Investment Stewards & Company Inc., Horizons Funds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages $11.5 billion of client assets ($6.5 billion in assets under management and $5.0 billion in assets under administration). Additional information is available at

SOURCE Jovian Capital Corporation

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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