(August 22 – 16:00) – YMG Capital Management Inc. (TSE-YMG) is reporting a net loss for the second quarter ended June 30. The investment counsel says the net loss for the quarter was ($13,000), 0¢ per share, compared to net income of $357,000, or 3¢ a share, a year ago.
Revenue for the quarter was $4.1 million, compared to $4.2 million a year ago. Assets under management were $13.4 billion at June 30, compared to $10 billion a year ago.
The company says fee revenue for the quarter was $4,163,000, an increase of 15% over fee revenue of $3,631,000 for the same quarter in 1999. During the quarter YMG liquidated certain portfolio investments and realized an investment loss of $109,000. These sales reduced investment income from the liquidation of portfolio investments for the first half of the year to $3,319,000. Cash flow from the company’s investment in real estate added $79,000 in revenue for the quarter.
YMG also announced that it has effected the reclassification of 5,358,142 non-voting shares into common shares on a one-for-one basis and are in the process of finalizing the documentation with the Toronto Stock Exchange. As a result, the number of common shares outstanding is now 13,128,800.
The number of outstanding common shares reflects the issuance of 200,000 common shares in connection with the previously announced acquisition by YMG of AlphaQuest Capital Management Inc. and the eventual cancellation of 187,276 common shares held by YMG shareholders who exercised statutory dissent rights in respect of the reclassification.
As a result of the reclassification, officers, directors and employees of YMG now own approximately 68.2% of the outstanding common shares.
The company also announced that the board of directors has authorized a third quarter dividend of 5¢ a share, payable September 29.
-IE Staff