VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/02/13 -- Matrix Asset Management Inc. (the "Company" or "Matrix") (TSX: MTA) reported today its financial and operating results for the year ended December 31, 2012.
"The first half of 2012 was a challenging period for Matrix yet we are pleased with some of the progress we have made since the second quarter," said David Levi, President and CEO of Matrix. "Efforts aimed at reducing expenses have resulted in a 5.1% decrease in recurring expenses in 2012. Matrix Funds have demonstrated organic growth with its Flow Through LP program. SEAMARK's AUM increased in the fourth quarter. The return of three former principals who re-joined SEAMARK from LeeSide Capital Management Inc. in March 2012 has been a stabilizing influence. Moreover, the proposed business combination with Marquest we announced recently would offer a great opportunity for Matrix to attain greater scale and realize significant synergies. Improving the balance sheet is a priority for management and we are considering a range of potential options to increase working capital."
Selected Fourth Quarter and Year End 2012 Highlights
-- As at December 31, 2012, assets under management ("AUM") were $1.1 billion, compared to $1.1 billion as at September 30, 2012 and to $1.6 billion as at December 31, 2011.-- Total revenue for the fourth quarter of 2012 was $5.0 million compared to $6.6 million during the fourth quarter of 2011. Total revenue for the year was $24.3 million compared to $30.7 million in 2011. Incentive participation revenues totaling $0.8 million were earned during 2012 but have not been declared or recorded as revenues in the financial statements for the year ended December 31, 2012.-- EBITDA for the fourth quarter was $0.1 million, an increase of $2.8 million compared to the fourth quarter of 2011. EBITDA for the 2012 year was $1.1 million, an increase of $6.5 million compared to 2011.-- Recurring EBITDA for the fourth quarter was $0.1 million, a decrease of $0.1 million compared to the fourth quarter of 2011. Recurring EBITDA for the 2012 year was $1.5 million, a decrease of $4 million compared to 2011.-- Free Cash Flow for the fourth quarter was $(0.2) million, an increase of $2.9 million compared to the fourth quarter of 2011. Free Cash Flow for the 2012 year was $0.2 million and is a significant improvement from the cash outflow of $6.3 million in 2011.-- Total Expenses for the fourth quarter decreased by $3.4 million or 31% compared to the fourth quarter of 2011. Total Expenses for the year decreased by $12.1 million or 29% compared to 2011.-- Recurring expenses for the fourth quarter decreased by $0.5 million or 6.3% compared to the fourth quarter of 2011. Recurring expenses for the 2012 year decreased by $1.6 million or 5.1% compared to 2011.-- Net loss for the fourth quarter was $(3.2) million compared to $(9.1) million during the fourth quarter of 2011. Net loss for the year was $(4.9) million compared to $(10.2) million in 2011.-- Working capital deficit has increased over the quarter by $1.8 million to $(6.0) million. Working capital, including contingent assets, was $(4.2) million. See" Liquidity and Capital Resources".-- Matrix declared two cash dividends and two stock dividends during 2012. Matrix has not generated sufficient Free Cash Flow to declare and pay further cash dividends as management's current priority is managing cash flow with a view towards reducing Matrix's working capital deficit.-- During the fourth quarter of 2012, Matrix announced the closing of the Matrix 2012 Enhanced Short Duration National and Quebec Flow Through LP. It is a unique product which offered the shortest hold period of any syndicated Flow Through LP in the class of 2012. Total gross proceeds raised were $25.5 million, representing the largest amount raised in four years. For 2012, total Flow Through LP sales were $40.3 million compared to $27.3 million in 2011, representing an increase of 48%.