Jovian Releases Results for Year Ending March 31, 2007

    Success of Asset Management Platform Continues to Boost Revenue

    TORONTO, June 26 /CNW/ - Jovian Capital Corporation (Jovian) (JVN: TSX-V)
today released its annual report to shareholders, detailing results for the
year ended March 31, 2007.
    "Jovian continues to grow in line with our strategy and meet our goals,"
said Philip Armstrong, President and CEO of Jovian Capital Corporation. "Our
asset management platform has seen significant growth over the last four years
and, in our view, will help mitigate the volatile earnings of our wealth
management platform in the future."


    Revenue for the quarter and year ended March 31, 2007, was $30.8 million
and $128.4 million, compared to $59.9 million and $131.8 million in the prior
    The largest contribution to the decrease in revenue for the comparable
three month period and for the year was found within our investment dealer,
MGI, and, in particular, their capital markets group.


    Jovian reported EBITDA (defined as earnings before interest, taxes,
revaluation of share redemption liability, non-controlling interest,
depreciation and amortization) of $12.9 million and $0.7 million for the
twelve and three months ended March 31, 2007, representing a fully-diluted
EBITDA per share of $0.02 and $0.00, respectively, compared to $17.6 million
and $11.2 million or $0.05 per share and $0.05 per share, respectively, for
the previous year. This again reflects our weaker results from MGI, which had
a record year in 2006.


    Jovian reported earnings for the year ended March 31, 2007, of
$2.0 million after incurring a fourth quarter net loss of $0.3 million. This
compares to net earnings of $5.4 million and $5.3 million for the
corresponding periods ended March 31, 2006.


    Total expenses for the three month period ended March 31, 2007, was
$31.1 million, compared to $54.6 million in the corresponding quarter of the
prior year, representing a decrease of $23.5 million or 43 per cent. Total
expenses for the year ended March 31, 2007, was $126.4 million, compared to
$126.3 million for the year ended March 31, 2006.
    Selling, general and administration expense was $11.5 million for the
three months and $39.5 million for the year ended March 31, 2007, compared to
$9.8 million and $28.3 million for the prior year. The $1.7 million or
17 per cent and $11.2 million or 40 per cent increase in the comparable
periods represents the expansion occurring within the existing platforms, in
addition to the impact of acquisitions completed during the course of the

    Liquidity and Capital Resources

    Cash and only those investments considered cash equivalents, included
under the title Securities Owned, were $44.3 million as at March 31, 2007,
compared with $27.9 million as at March 31, 2006. Jovian continues to hold
highly liquid assets due to its regulatory requirements and operational needs.

    Selected Financial Data

    Quarterly Review (unaudited)
    (in thousands of Canadian Dollars)

                                     Three Months Ended
    Fiscal Year
    (March 31)              2007                            2006
                March     Dec    Sept    June   March     Dec    Sept    June
                31/07   31/06   30/06   30/06   31/06   31/05   30/05   30/05
    Revenues   30,818  36,664  21,047  39,840  59,894  26,553  25,741  19,579
     Expenses  30,029  30,578  22,979  31,686  48,485  23,808  23,275  18,029
     EBITDA       789   6,086  (1,932)  8,154  11,409   2,745   2,466   1,550
     Expense      124      14      37      54     229     150     153       -
    EBITDA        665   6,072  (1,969)  8,100  11,180   2,595   2,313   1,550
    Net Earnings
     (Loss)      (260)  1,885  (3,559)  3,903   5,293      84      51      18
    Earnings per
     share -
     basic       0.00    0.02   (0.03)   0.03    0.06    0.00    0.00    0.00
    Earnings per
     share - fully
     diluted     0.00    0.02   (0.03)   0.03    0.05    0.00    0.00    0.00
    Stock-based compensation expense is a non-cash item included in operating
    expenses as a result of the adoption of the Canadian Institute of
    Chartered Accountants Handbook Section 3870, Stock-Based Compensation and
    Other Stock-Based Payments. For measurement purposes, stock-based
    compensation expense is excluded from operating expenses in this table in
    order to determine Adjusted EBITDA.
    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, revaluation of share redemption
    liability and non-controlling interest. Adjusted EBITDA is EBITDA
    adjusted for stock-based compensation.


    2007 Accomplishments

    -   Our asset management companies, T.E. Wealth, JovInvestment Management
        Inc. and Leon Frazer now manage approximately $5.0 billion in assets
    -   Our Principal Protected Note business has more than doubled over the
        year. We have issued more than $500 million of Notes to date.
    -   We acquired Fairway Asset Management Corp., now called JovFunds
        Management Inc., a company that creates, manages and markets
        financial products. All of our investment product brands are now
        being consolidated under the JovFunds Management umbrella.
    -   We continue to see positive margin expansion from our asset
        management platform.


    Jovian remains committed to being a growing, profitable, dividend-paying
financial services holding and management company that delivers quality
financial solutions to clients. With a focus on innovation, learning, and
risk-taking, Jovian strives to create a participatory workplace that enables
people to get involved in making decisions that advance our common business

    About Jovian Capital Corporation

    Jovian is a publicly-traded company listed on the TSX Venture Exchange
(JVN). Jovian is a management and holding company with interests in a variety
of financial service firms specializing in wealth(*) and asset(xx) management.
The Jovian group of companies operates as a national financial services
organization with approximately $14.0 billion of client assets ($5.0 billion
in assets under management and $9.0 billion in assets under administration).

    (*) Wealth management entities include Convoy Capital Corporation,
    JovFunds Inc., MGI Securities Inc., MGI Securities (USA) Inc. and Rice
    Financial Group Inc. (xx)Asset management entities include Accumulus
    Management Ltd., BetaPro Management Inc., Charterhouse PSI Management
    Corporation, DOCP Management Corp., Horizons Funds Inc., JovInvestment
    Management Inc., JovFunds Management Inc., Jovian Asset Management Inc.,
    Leon Frazer & Associates Inc., Pescara Partners Inc., Taliesin Capital
    Inc., T.E. Wealth. Financial corporate service entities include Felcom
    Data Services Inc. and Services Felcom Data (Quebec) Inc./Felcom Data
    Services (Quebec) Inc.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Don Sangster, Investor Relations, Jovian
Capital Corporation, (416) 933-5744; Jason Mackey, Chief Financial Officer,
(416) 933-5755; or Philip Armstrong, President & C.E.O., Jovian Capital
Corporation, (416) 933-5752

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Jovian Capital Corporation

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